Washington, D.C. - For the first time in nearly two decades Texas taxpayers will be deducting their state and local sales taxes from their federal income tax bill now that a bill authored by U.S. Congressman Kevin Brady (R-The Woodlands) has passed both the House and the Senate and is headed directly to the President’s desk.   

 

Congressman Brady, who left no stone unturned in guiding this legislation through Congress, sent the President a pen earlier in the day and wished him God’s speed in signing the tax reform legislation into law. 

 

The card attached to the pen read:

“Mr. President,

Please sign the American Jobs Creation Act as soon as it hits your desk.  This bill is important to Texas families who deserve to be able to deduct their sales taxes from their federal taxes each year.  Thank you for restoring fairness to the tax code and helping ease the sales tax burden on our families.”

 

After the President signs the measure into 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.  Taxpayers taking a table deduction would also have the option to add on receipts for cars, boats, and other large ticket items determined by the Secretary of the Treasury. 

 

The measure would save Texas taxpayers an estimated $1 billion a year, an economic boost that would create 16,500 new jobs – enough to fill nearly every seat in the Toyota basketball arena with a new Texas worker.