Davis Hails Passage of Tobacco Buyout and Sales Tax DeductionOctober 07, 2004

WASHINGTON, D.C. -- U.S. Rep. Lincoln Davis today announced the long awaited passage of a tobacco buyout and a provision that allows Tennesseans to deduct their sales tax from federal tax returns. Only Senate action awaits before President Bush signs them into law.

By once again standing up for his constituents and working in a bipartisan fashion, Davis helped the House of Representatives overcome a six year stale mate and pass meaningful tobacco legislation that provides relief to farmers who have seen their incomes cut in half since 1998.

"I am extremely thankful that tobacco state Democrats and I were able to reach out to our Republican colleagues and work together to finally get the buyout that all of our farmers desperately needed," said Davis. "With this buyout farmers will be able to decide how much tobacco they want to grow on their land instead of having the government decide for them."

Over the course of ten years the 4th District will receive roughly $65 million while the total economic impact in the state will be around $635 million.

"Most people believe this buyout helps only our farmers, but that is far from the case," Davis said. "The buyout impacts the communities where tobacco is being grown. It's a tremendous help to the tobacco farmers, and it's a huge boost to the economy."

In 1986, Congress repealed a provision that allowed states without a state income tax to deduct sales tax from federal income tax. This legislation restores the sales tax deduction, thus easing the tax burden for many Tennesseans. It has been reported that Tennesseans who itemize this deduction will save $470 a year.

"Tennessee taxpayers will be able to keep their hard earned money and will be saving hundreds of dollars a year," Davis said. "I hope in the future we can make this provision permanent."