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Washington, D.C. - After three long years of hard work, Congressman Kevin Brady’s (R-The Woodlands) Sales Tax Deductibility measure is one step closer to becoming a reality for taxpaying families in Texas. In a late night bi-partisan vote, the Ways and Means Committee voted to pass HR 4520, the American Jobs Creation Act containing the Sales Tax Deductibility measure.
“After nearly two decades of discrimination – Texas taxpayers are finally going to see some relief. Sales tax deductibility is going to happen this year. Last night’s action moves Sales Tax one step closer to a floor vote and ultimately the President’s desk.
“Restoring Sales Tax deductions is an issue of fairness. The federal tax code discriminates against taxpayers who live in states that wisely choose not to burden their residents with a state income tax. By allowing all Americans to deduct either sales tax or income tax, we treat all taxpayers fairly,” said Brady a member of the House Ways and Means Committee and deputy whip.
Brady’s bill restores the sales tax deduction Congress eliminated in 1986 providing for the deduction of state and local sales taxes. Once Brady’s measure becomes law, taxpayers could choose from a table of average deductions or provide receipts, recommended in years when cars, appliances, and other big-ticket items are purchased.
Preliminary estimates indicate that restoring this measure could keep $1 billion in Texas pockets, save an average family of four roughly $300, and create nearly 16,000 jobs annually.
Leadership expects a vote on this measure on the House floor within the week. |
