Texans For Texas - State Sales Tax Deduction Passes & Much Much More!

Washington, D.C. - A bill authored and fought for by U.S. Congressman Kevin Brady (R-The Woodlands) restoring the sales tax deduction to the federal tax code now heads to the President's desk for his signature. The provision is a part of the high profile international tax bill, the American Jobs Creation Act.

This is a huge economic boost for Texas, where taxpayers will save approximately $1 billion a year, and it's also an issue of fairness for states like ours. The tax code shouldn't be biased in favor of income taxes,”said Brady a member of the House Ways and Means Committee and deputy whip.

Once the measure becomes law taxpayers in all 50 states could choose to deduct either their state and local income or sales taxes, whichever is highest, for 2004 and 2005. Those choosing to deduct sales taxes could opt to take an average deduction determined by tables or claim a deduction based on actual receipts.

Preliminary estimates from the Texas State Comptrollers office indicate that restoring this measure could keep $1 billion in Texas pockets and create over 16,000 jobs annually. Additionally, the Comptroller projects $590 million in new investments and $874 million increase in gross state product. Other states could be expected to benefit comparably.

School choice opponents claim that choice harms public schools. Research, however, shows the opposite. A new study published by Harvard economist Carolyn Hoxby addresses the question: "Do public schools respond constructively to competition induced by school choice, by raising their own productivity?" The answer: Yes, they do, and the benefits are greatest where large numbers of students are eligible for choice.

The fact that choice benefits public schools -- not just students who switch to private schools -- is a key aspect of school choice. Because public schools improve due to competition, school choice benefits reach beyond those students who take advantage of the opportunity to attend a private school with a voucher or tax credit scholarship. Because competition forces both public and private schools to improve, choice is like a rising tide that lifts all boats. Even students whose parents don't shop around for a private school will benefit because their existing public schools will get better.

A Public Policy Failure
What was the fundamental reason for the failure?
"Lawyers, not economists, designed the system."

By VIRGINIA POSTREL, NEW YORK TIMES

Public policy experiments rarely produce complete successes or total failures. They usually leave room for people with different goals or values to keep arguing.

Occasionally, however, there's a policy disaster so catastrophic that everyone agrees that something has to change. California's convoluted attempt to deregulate electricity was one example. Texas's decade-long experiment in school finance equalization - universally referred to as Robin Hood - is another.

Recommended Reading:

• The ABC Outrage

• Our Very Own Example of Washington Wasting Dollars

• Shirking Responsibilities

• For Whom The Drive Tolls

• Lawyers See Obese U.S. Ripe For Fat Lawsuits

• Public Schools No Place For Teachers Kids

• A Faithful Catholic May (And Should) Vote For...

• How Tax Friendly is Your State?

• Zogby International Values Poll 2004

• Texans Remember Reagan

• MEET UP!

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