Weekly Message From Doc (Tax Fairness for Washingtonians)

Weekly Message From Doc (Tax Fairness for Washingtonians)

Before adjourning for the 109th Congress, the House of Representatives approved a tax relief plan that extends tax fairness for Washingtonians and provides important access to health care for seniors.

The bill extends the state sales tax deduction for two additional years. In 2004, I helped enact a law enabling Washington taxpayers to deduct state sales tax from their federal tax responsibility for tax years 2004 and 2005. This landmark law restored tax fairness to Washingtonians, and others who live in non-income tax states, for the first time in nearly 20 years. While I would like to see the state sales tax deduction made permanent, this bill represents an important step forward and will ensure tax fairness for taxpayers through tax year 2007.

Additionally, this plan stops a scheduled 5.1 percent cut in Medicare payments to doctors beginning January 1st. Ensuring that doctors are able to continue serving Medicare patients is a top priority. I have heard from many seniors and doctors in Central Washington concerned about access to care if the scheduled cuts are not stopped. Reduced payments could force doctors to stop accepting Medicare patients - leaving seniors without access to health care.

Highlights of the House passed measure:

* Continues state sales deduction through tax year 2007
* Extends the Research and Development Tax Credit for job-creating businesses
* Extends $4,000 higher education tax deduction through 2007
* Extends the tax credit for business investors in lower-income neighborhoods
* Extends tax deduction for out-of-pocket teacher classroom expenses
* Extends tax deductible medical savings accounts for two years
* Prevents a scheduled 5.1% cut in Medicare payments to physicians

I am pleased that the House has acted to provide much-needed tax relief to Washingtonians and ensure that health care providers have the resources they need to continue caring for patients.

http://www.hastings.house.gov/Read.aspx?ID=754