If
Texas had a state income tax, we could deduct
it from our federal income taxes. Ironically,
the tax reform bill in 1986 discriminates against
states who survive without a state income tax. Many
state income tax proponents in the school finance
debate enjoy pointing out how we 'lose' in
Texas without the state income tax.
For
years Texas lawmakers in Washington have fought
to make this injustice right. Now Texas
Legislators Tom Delay and Kevin Brady may have
a victory for us all.
If
you missed this story last week, here is some
of the press about it. Call your US Representative
now ask for tax relief in Texas. It is
only fair. The implications for
the future of Texas and school finance are
great.
Bill
Would Let Taxpayers Deduct Sales Tax
ALAN FRAM
Associated Press - June 4, 2004
WASHINGTON - People could deduct either state sales or income taxes from
their federal income tax under wide-ranging legislation overhauling corporate
levies that House Republicans introduced on Friday.
The core of the $34 billion, 10-year measure is a revamping of corporate
tax laws in an effort to end tariffs European countries have slapped
on U.S. goods in a trade dispute.
Details
emerge on sales tax plan
By Maria Recio
Star-Telegram Washington Bureau - June 5, 2004
WASHINGTON - New details emerged Friday about a tax break that would
mean about $1 billion a year in savings for Texas taxpayers as the House
Ways and Means Committee introduced a plan that would enable taxpayers
to deduct sales taxes on their federal returns for 2004 and 2005.
Initially, the plan would have allowed taxpayers to calculate their sales
tax deduction by referring to an Internal Revenue Service chart, but
the version of the plan put forward Friday would give them the choice
of saving receipts to make the calculation.
The provision for the sales tax break, first revealed Thursday by House
Majority Leader Tom DeLay, R-Sugar Land, is part of a comprehensive corporate
tax package that the House is expected to approve within the next two
weeks.
The
provision enabling taxpayers
who itemize to deduct sales taxes
is especially important to seven
states that do not have an income
tax -- Texas, Florida, Tennessee,
Wyoming, Washington, South Dakota
and Nevada -- because residents
of the other states are able
to deduct state income taxes
from their federal returns.
"This is a huge economic boost for Texas, where taxpayers will save nearly
$921 million a year, and it's also an issue of fairness for states like ours," said
Rep. Kevin Brady, R-The Woodlands.
Brady, a member of the tax-writing panel, said the provision is only
in effect for two years because House Ways and Means Committee Chairman
Bill Thomas, R-Calif., insisted on keeping the cost of the entire bill
down.
"We're very confident that we can either extend it or make it permanent," Brady
said in an interview. Brady and DeLay said the average savings for Texas taxpayers
would be $300 a year per household.
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