FOR IMMEDIATE RELEASE
Contact:  Russ Levsen, 202-226-4449

HERSETH FIGHTS FOR SOUTH DAKOTA TAX RELIEF

Joins Bipartisan Effort to Allow South Dakotans to Deduct Sales Taxes from Federal Tax Returns; Casts Vote to Make Middle Class Tax Relief Permanent

September 9, 2004, Washington, DC – Rep. Stephanie Herseth joined a bipartisan, coalition of Senators and Representatives today to offer tax relief to South Dakota individuals, families and businesses.  Herseth joined colleagues from the Senate and House to back legislation that would correct an inequity in the federal income tax codes that unfairly penalizes states like South Dakota that don’t have a state income tax. 

Herseth said, “South Dakotans carry a higher burden of federal taxes because they do not have a state income tax, and I believe that should be corrected.  This bill provides an immediate, significant tax cut to every individual, family and business that itemizes their deductions on their federal income taxes.  A tax cut for South Dakotans makes good sense, and I am proud to have supported the bill.”

Earlier this year, in one of her first votes, Herseth joined 203 Republicans and 48 Democrats in voting for the American Jobs Creation Act, which included a provision to allow residents of states like South Dakota to deduct their state and local sales taxes in 2004 and 2005.  Herseth advocated a permanent fix to the problem earlier this year, and noted that the two year fix is a good first step towards correcting the inequity.

Currently, the residents of 43 states are allowed to deduct their state income tax from their federal taxable income, leaving South Dakota, Texas, Tennessee, Nevada, Florida, Washington and Wyoming to carry a higher share of the burden.

Additionally, Herseth voted to instruct members of a congressional conference committee to extend middle class tax relief provisions expiring in 2004 and to make sure these tax cuts do not increase the federal budget deficit.  Those provisions include the new 10 percent bracket for lower and middle class taxpayers, child tax credit, and marriage penalty relief.

“Congress was right to pass middle class tax relief last year, but unless we act now, those provisions will expire this year,” Herseth noted.  “South Dakotans deserve to keep the child tax credit, as well as relief from the marriage penalty and new lower tax rates.”

Herseth added, “As South Dakota’s independent voice in Congress, I’m proud to support good ideas, proposed by either party.  Every taxpayer in South Dakota choosing to itemize their deductions will see their taxes cut as soon as this bill is enacted, and I’m proud to have been able to use our vote to help it pass the House.”