January 8, 2009

Washington, D.C. – Nevada Senators Harry Reid and John Ensign joined forces today in supporting key tax relief for Nevadans.  The deduction for state and local sales taxes, an important measure of fairness for residents in states like Nevada that do not have a state income tax, is set to expire on January 1, 2010.  Ensign and Reid joined as cosponsors of a bill to permanently extend the state and local sales tax deduction.
 
"Our economy is hurting, and nobody knows that more than Nevada," said Ensign.  "People all across Nevada are struggling to make ends meet.  Now is not the time to be raising taxes on middle-class families who rely on this deduction."
 
"I was happy we extended this important tax cut in the last Congress, but it's time to make it permanent," said Reid.  "Hundreds of thousands of Nevadans rely on this deduction.  Making it permanent is long overdue and especially meaningful during these challenging times."

Because Nevada has no state income tax, Nevadans are allowed to deduct a portion of their sales tax from their federal tax returns, saving most families hundreds of dollars each year.  In October 2008, the state and local sales tax deduction was extended by Congress, but it expires on January 1, 2010.
 
The two senators pointed out that more than 350,000 Nevadans benefit from the state and local sales tax deduction.

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