A bipartisan group of 57 Members has, in a letter to the House of Representatives Ways and Means Committee, sought a renewal of the United States state and local sales tax deduction, which expired on January 1, 2014. The state and local sales tax deduction was one of the temporary tax provisions, called the “tax extenders,” that expired on that date. For individuals, apart from the sales tax deduction, those provisions also include mortgage tax relief and education tax deductions.
The provisions are normally renewed by Congress, but the uncertainty in the situation creates great uncertainty for taxpayers. In addition, this year, the situation of tax extenders’ renewal is complicated by the need to limit the US fiscal deficit, as well as their possible cancellation in the on-going discussions on tax reform to broaden the US tax base and cut income tax rates. Many members of Congress therefore want to make the sales tax deduction permanent.
