The sales tax deduction is a part of the America Jobs Creation Act, a tax relief measure that ends European Union sanctions against U.S. employers and lowers taxes on companies that manufacture or produce their products in America. The measure was signed today by the President. 

"Persistence pays off", said Brady. "Now that the President's signature has made sales tax deductibility law, Texas families from every walk of life can look forward to deducting the state and local sales tax they pay from their federal income tax bill.  Sales taxes add up for families. This is help directly targeted to our working middle class families," said Brady.  "It is also a major economic boost for Texas."

A young family of four making under $30,000 will be able to deduct about $500 off their taxes. A middle income family—a teacher and her husband with two children together—making $60,000 will be able to deduct around $1,000 from their federal taxes.

The average savings for Texas taxpayers is nearly $400, according to the State Comptroller's Office.

Estimates indicate that under this measure Texas taxpayers are going to save $1 billion a year, an economic boost that would create 22,000 new jobs - enough to fill nearly every seat and the floor of the Toyota basketball arena with a new Texas worker.

With the sales tax deduction in place taxpayers in all 50 states could choose to deduct either their state and local sales taxes or income 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.