| Washington, DC: Today Congressman Kenny Marchant (TX-24) voted to extend tax relief provisions set to expire at the end of 2005 upon the House passage of H.R. 4297, The Tax Relief Extension Reconciliation Act. The bill is especially important for Texas, because it extends the ability of residents to deduct their sales tax payments from their federal income taxes. Texas is one of only nine states without a state income tax.
"Today's vote was critical for all Texans," Marchant said. "It prevents us from having to unfairly pay higher federal taxes. It is important that the federal government does not punish our state for choosing not to burden its residents with income taxes."
Enacted in 2004, sales tax deductibility puts states without an income tax on par with those that do. Without the passing of this legislation today, Texas residents would have been forced to pay higher taxes to the federal government on this year's taxes.
Other key provisions of the tax relief bill include renewing reduced tax rates on capital gains and dividend income through 2010.
"Failure to renew reduced tax rates on capital gains and dividends would have been detrimental to the over 90 million Americans who invest in stocks," Marchant remarked. "Many elderly and retired individuals depend on dividend income. It is very important that we maintain these reduced tax rates.
"Texans and all Americans stand to benefit from this bill. The economy is strong and getting stronger. It is vital that we promote pro-growth policies so our country can continue to experience economic growth and prosperity."
CONTACT:
Annie Christian
(202) 225-6605
annie.christian@mail.house.gov |
