From Senator Maria Cantwell

Cantwell’s Weekly Update for Washington State Monday, April 11, 2005
Last Call for Sales Tax Deduction
With tax day – April 15th – rapidly approaching, I want to remind you about the state and local sales tax deduction that Washington state taxpayers can take advantage of now for the first time in 18 years. Last year I worked with my Republican colleague Sen. Kay Bailey Hutchison and Washington’s Rep. Brian Baird in the House to get legislation passed to allow Washington state taxpayers to deduct state and local sales taxes from their 2004 federal income tax returns.

Any Washington state taxpayer who itemizes on their federal tax return will be eligible for this new deduction. The most important steps you can take to prepare for the new deduction are 1) save your receipts, especially for big purchases, 2) check your records for any large purchases you may have made since January 1, 2004, and 3) if you itemize on your federal tax return, choose the standard sales tax deduction or a deduction based on receipts. These tips provide a starting point, but I’ve posted more detailed information about how to take advantage of the new deduction on my web site, at http://cantwell.senate.gov. The IRS also has information at http://www.irs.gov/newsroom/article/0,,id=134768,00.html.

Also, if you need an extension to file your federal tax returns – for whatever reason – you must do so on or before the filing deadline, which is this Friday. Call the IRS’s special toll-free line at 1-888-796-1074 to request an extension, or follow this link for more information: http://www.irs.gov/newsroom/article/0,,id=137750,00.html


Outrageous Gas Prices: Could Home-Grown Fuel Be the Answer?

With gas prices soaring to record levels, the pocketbooks of Washington state consumers and businesses are taking a serious hit. These record prices only underscore America’s need to set some ambitious energy goals. We need an energy policy that relies on American ingenuity rather than the whims of the OPEC cartel or the Saudi royal family, but we need to make smart investments in home-grown fuels to get there.

This year, our foreign oil dependence will cost the American economy more than $150 billion. And last week, an international report predicted that oil prices – already at record levels – could double to more than $100 per barrel (currently around $53) in the next 25 years. These price spikes will be driven by economics like the tripling of China's oil demand by 2030. It's clear to me we're in the thick of an international race for energy independence.

Yesterday I toured a plant in Seattle that produces biodeiesel fuel. I talked with farmers, leaders in the Washington state biofuels industry, researchers, and state and local officials to hear their ideas for moving forward on a home-grown energy strategy. Biofuels are liquid transportation fuels such as biodiesel or ethanol, which are produced from plant matter rather than petroleum. The most common source of ethanol is corn, while biodiesel can be produced from vegetable oils, animal fats or even recycled cooking grease.

I plan to introduce new legislation to boost the United States’ production of biofuels to 20 billion gallons by the year 2020. With record-high gasoline prices expected to continue their climb, I’ll use my seat on the Energy Committee to call for an innovative national biofuels strategy. Many materials can be converted into biofuels, including rapeseed (canola) and wheat straw, which are grown in Washington state. Development of this technology will provide a strong boost for Washington state agriculture, and create thousands of jobs for the region.

We may sit on just 3 percent of the world’s oil reserves, but this country can control its own destiny in the global energy marketplace. And we can do it at the same time we are providing energy security to our consumers and economic security to our agricultural communities. Washington state is poised to lead the way.