| Washington, DC: Congressman Kenny Marchant (TX - 24) joined colleagues from both the House and Senate on Wednesday at a press conference to rally support for the Permanent Sales Tax Deduction Act of 2005.
Representative Marchant spoke on behalf of the bill along with other members of the bicameral, bipartisan coalition, including Texas legislators Senator Kay Bailey Hutchison, Representatives Kevin Brady, John Carter, and Louie Gohmert.
The Permanent Sales Tax Deduction Act of 2005 would make permanent the two year State Sales Tax Deduction that was passed by the 108th Congress in 2004. The State Sales Tax Deduction was created to end discrimination in the federal tax code against the sales tax and treat all taxpayers fairly.
"I stood at the podium in the Texas House and urged Congress to make the sales tax deduction permanent," Marchant said. "And now I stand here as a United States Congressman, joining the forces to make this happen."
The bill permanently reinstates the sales tax deduction Congress eliminated in 1986. It allows all taxpayers in every state to deduct from their federal income tax either state sales tax or income taxes. Taxpayers can choose the higher deduction.
Permanent sales tax deduction is beneficial to Texas, one of the eight states not to have a personal income tax. Without the deduction, Texans were burdened with more federal taxes than identical taxpayers in states with an income tax. The Sales Tax Deduction Act restores equity among taxpayers in all fifty states.
The legislation has been introduced in the Senate by Hutchison, who teamed with the original co-sponsor, Sen. Maria Cantwell (D -WA). Sen. Lamar Alexander (R- TN) was also present at the press conference to pledge his support for the permanent sales tax deductibility. All three Senators' home states lack an income tax.
Brady announced his intention to introduce a companion bill in the House next week. Representatives Katherine Harris (R - FLA) and Marsha Blackburn (R -TN) spoke in favor of the legislation as well.
"There ought not to be an expiration date on fairness," commented Brady. "Restoring sales tax deduction is only fair."
According to the Texas State Comptroller's Office, sales tax deductibility will save Texans an average of $408 per itemizing household, or $974 million overall, on their yearly federal taxes. The tax savings estimated are expected to generate 21,798 new Texas jobs, $819 million in new Texas investment, and $1.2 billion in increased Gross State Product in 2005.
"This legislation is important not only for Texans, but all of the fifty-five million Americans who live in states without an income tax," said Marchant. "With such strong bipartisan support in both the House and the Senate, I am positive about the prospect of establishing permanent tax equity for all citizens."
CONTACT:
Annie Christian
(202) 225-6605
annie.christian@mail.house.gov |
