Taxes and Spending
Individuals and families are best able to make decisions about how to save, invest or spend for their future – not the federal government. Americans deserve to keep more of their hard earned money and they deserve a simple tax code that is understandable.
Reducing the Tax Burden for All Americans
Congressman Hastings has voted to enact several major tax relief measures aimed at decreasing tax rates for all American workers and encouraging greater business investment to create jobs and strengthen our economy. This tax relief must be made permanent, so that American families and businesses do not face massive tax increases in the future.
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Tax Relief Highlights
- Income tax rates reduced for all workers.
- For the first time since 1986 tax fairness for Washingtonians was restored (through tax year 2007) by writing the state sales tax deduction back into the tax code.
- $1,000 child tax credit for parents.
- Elimination of marriage tax penalty so couples are no longer paying higher taxes simply because they are married.
- Incentives to help Americans save for college and retirement.
- Death tax is being eliminated.
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Sales Tax Fairness for Washingtonians
In 1986, a law was enacted that eliminated the state sales tax deduction from the federal tax code, but maintained the state income tax deduction. This began nearly 20 years of discrimination again non-income tax states like Washington.
In 2004, Congressman Hastings joined with both Republicans and Democrats to enact a landmark law to correct this injustice by enabling Washingtonians the opportunity to again deduct state sales tax from their federal tax bill
This hard-won victory provided tax fairness for those live, work and raise families in Washington, and the eight other states with no state income tax.
Unfortunately, the state sales tax extension has expired. Congressman Hastings has made several attempts to renew the deduction and is a cosponsor of a bill to make this tax fairness permanent.
He continues working to achieve bipartisan consensus on making the state sales tax deduction permanent for those who live, work and raise families in Washington.
Eliminating the Death Tax
The last thing families in Central Washington and across the nation should have to worry about when a loved one dies is selling the family farm or business in order to pay the Internal Revenue Service. Unfortunately, that is the situation hardworking families could face if the death tax is not permanently abolished. Congressman Hastings believes this is a form of double taxation and is simply unfair.
In 2001, Congress approved a gradual phase-out of the death tax. However, Democrat opponents in the Senate forced a time-limit on this tax relief. Without action, the death tax will come back to life at the full rate again in 2011. This means that small business owners and family farmers will once again be assessed a tax on the value of their property at the time of their death, despite having paid taxes throughout their lifetime.
Eliminating the death tax is particularly important for the many small business owners and family farmers in Central Washington. Our region’s economy was built upon their entrepreneurial spirit, and our economy still depends on the continued success of the enterprises they have worked so hard to create.
Congressman Hastings is a cosponsor of proposals to permanently repeal the death tax so that these farms and businesses can be passed down to children and grandchildren.
Responsible Spending
*Click here for Congressman Hastings' Fiscal Year 2010 Appropriations Requests
The federal government has a responsibility to spend taxpayer dollars wisely and efficiently. This means taking a balanced approach to the federal budget that meets the government’s most essential responsibilities, while controlling spending.
Common sense tells us that there are areas within a budget of over $3.5 trillion that can be scrutinized for inefficiencies and reduced over time in order to achieve a balanced budget. By prioritizing and reforming federal spending, Congressman Hastings believes the government can achieve savings and avoid tax increases.
Congressman Hastings supports eliminating unnecessary federal programs, a Constitutional amendment requiring a balanced budget and providing the president authority to veto line-items in the budget to reduce wasteful spending. Additionally, he has voted to add transparency and accountability to the federal budget process, and he supports efforts to address the growth of programs that increase each year automatically without congressional action or review.