HALL VOTES TO EXTEND SALES TAX DEDUCTIBILITY
WASHINGTON, D.C. ...Today, Rep. Ralph Hall (R-TX) joined Members of Congress in voting for a tax bill that includes a sales tax deductibility provision. The Tax Relief Extension Reconciliation Act of 2005 also extends several expiring tax cuts, including incentives for small business, teachers, students, and families.
"This bill contains many tax measures that will provide relief to the citizens of the fourth district of Texas," Hall said. The package includes items that allow deductions of higher education expenses, teachers' out-of-pocket classroom expenses, charitable donations and health care expenditures, and small business investment.
Earlier in the week, the House unanimously passed three separate tax bills. The measures will help business in the Gulf region that were devastated by the hurricanes, protect middle class citizens from having to pay higher taxes under the Alternative Minimum Tax (AMT), and provide benefits for military personnel in combat zones.
"Most importantly for our Texas' citizens is the provision that will allow taxpayers in states that have no state income tax to deduct state and local general sales taxes from their Federal income taxes," Hall stated. "Since Texas has no income tax, we will benefit from this tax idea. This initiative provides greater equity and fairness in the tax code, helps boost state economies, and provides further tax relief to taxpayers and small businesses."
"The sales tax deduction has gone a long way towards providing tax relief to Texans who are unfairly burdened with paying a greater share of Federal taxes simply because they live in a state with no income tax," Hall explained. "We should continue this important provision and work to make it a permanent part of our tax code."