Washington, D.C. - U.S. Congressman Kevin Brady (R-Texas) wants to preserve a tax deduction for Texans that saves them over $1 billion per year on their federal income tax.  Today, Brady and other legislators sent a letter to Ways and Means Committee Chairman Rangel and Ranking Member McCreary urging them to make permanent or at least extend the state sales tax deduction for 2008. 

 “It’s an issue of fairness that Texas families be able to deduct every penny of state and local sales tax they pay throughout the year from their federal tax bill, especially when families in most states are deducting their state income taxes, ” said Brady.  

Since 2004, residents of Texas, Tennessee, Florida, Nevada, South Dakota, Washington and Wyoming have been able to claim the deduction on their federal income tax returns for state and local sales and motor vehicle taxes they have paid.  This puts them on an equal playing field as other American taxpayers, who can deduct their state income tax from their federal income tax.

Congressman Brady led the bi-partisan effort in the U.S. House of Representatives to restore the federal deduction in 2004, and has continued to work on legislation that would make the sales tax deduction permanent. The ability for taxpayers to use the deduction expired at the end of 2007, and should be made permanent, says Brady, or at least extended, otherwise Texans will see a tax increase when they file their 2008 taxes next year.

Members who signed the letter are fighting for basic fairness and tax equality.  If the state sales tax deduction is made permanent or extended, residents in states with only a sales tax will to continue to be treated equally and reasonably by the federal government.

From his seat on the House Ways & Means Committee, which has jurisdiction over tax policy, Congressman Brady has fought to lower taxes.