Washington, D.C. - With sales tax deductibility just days from the President’s desk becoming law, U.S. Congressman Kevin Brady (R-The Woodlands), House Majority Leader Tom DeLay (R-Sugar Land) and Senator Kay Bailey Hutchison (R-TX) held a press conference today in Houston heralding the benefits of sales tax deductibility for all Texas families.

 

“Texans from every walk of life stand to benefit as soon as the President signs sales tax deductibility into law.  Texas taxpayers are going to save 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,” said Brady who authored the bill restoring the sales tax deductibility to the federal income tax code.  

 

Additional estimates forecast that a family of four making between $25,500 and $34,000 will end up deducting about $600 from their federal tax bill.  Families making $59,695 - $68,222 will likely claim a deduction of about $1028. 

 

“That’s real savings directly for working middle-class families,” Brady continued.

 

With the sales tax deduction in place 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.