Skip to content
Washington, D.C. – Wyoming residents' federal tax bill will be lowered by a total of about $28 million when President Bush signs legislation ushered through Congress today by the Wyoming Congressional delegation.

In the hours leading up to adjournment for the November election, the Senate passed the final conference report for the American Jobs Creation Act, H.R. 4520, by a vote of 69-17 and one voting present. The House passed the legislation on Thursday by a vote of 280-141.

The legislation includes a provision which would allow residents of states with no state income tax, like Wyoming, to deduct their state sales taxes when filing their federal income tax returns.

Rep. Barbara Cubin, R-Wyo., was instrumental working with Majority Leader Tom DeLay, R-Tex., to include the provision in the House bill.

Sen. Craig Thomas, a member of the conference committee charged with reconciling the Senate and House versions of the bill, supported inclusion of the provision in the Senate bill and was influential in making sure it wasn't dropped during final negotiations.

"This tax relief will help keep money in the pockets of Wyoming residents and help provide financial flexibility at the family level as well as at the state level. It's an issue of fairness," Thomas said. Sen. Mike Enzi joined his colleagues and the delegations from six other states in pushing for the tax deduction measure.

"This is a major victory for Wyoming citizens and the beginning of a more fair tax code," said Enzi. "Barbara's push on the House side shows that Wyoming's lone representative knows how to make our state's voice heard in a crowd and get things done. This was a good team effort for the Wyoming delegation and the delegations of the other states in our same boat."

"Wyoming citizens shouldn't be penalized just because they're lucky enough to live in Wyoming," said Cubin. "The people of Wyoming were shouldering an unfair share of the federal tax burden and that's not right. It's a matter of simple fairness. It's a matter of keeping more of your hard-earned money to spend on your family's needs. My heartfelt thanks to Senators Thomas and Enzi for seeing this bill through to a successful end in the Senate."

Residents in 43 states are allowed to deduct their state income taxes from their federal tax bill. Before 1986 Wyoming residents were allowed a similar deduction for state sales taxes, but that changed. This new law, once signed by the President, will restore the ability of Wyoming residents and the residents of Florida, Texas, Tennessee, Nevada, South Dakota, and Washington to deduct state sales taxes. The amount taxpayers will be allowed to deduct will be figured using a formula designed by the IRS using factors such as income and family size.

The President is expected to sign the bill. The bill's primary purpose is to counteract European Union (EU) trade sanctions currently being imposed on the United States.