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Blackburn Calls for Support on Pro-Tennessee Tax Relief Bill

Location: Washington, DC

December 7, 2005

Sales Tax Deduction Extension & Songwriters Tax Provision
Tennessee taxpayers save $256 to $283 million a year with sales tax deduction

WASHINGTON, D.C. -- U.S. Representative Marsha Blackburn (TN-7th District) called today for support of the Tax Relief Extension Reconciliation Act of 2005, H.R. 4297. The bill includes two provisions Blackburn worked to secure including a year extension of the federal sales tax deduction set to expire after April 2006, and a revision of tax laws adversely affecting Tennessee songwriters. The sales tax deduction provision alone would benefit the nation's seven non-income tax states and their nearly 55 million residents.

"We've got a tax relief bill with two hugely important provisions for Tennessee and every member of this delegation should support it," Blackburn said. "Let there be no mistaking it, a no vote on this is a vote to raise taxes. The sales tax deduction has been good for Tennessee taxpayers and it's been good for the state's economy. This is no time to oppose extending the provision. I've worked with our songwriters for nearly three years to address the tax policies regarding the sale of their musical creation, and we finally have a bill on the table to bring them some much needed fairness. It's simply not right that they be penalized by the tax code. Right now our songwriters pay income taxes on the one-time sale of their musical catalog, when it's only fair the sale be considered under capital gains. We need to encourage our country's creative community, not slam them with a tax code that puts them out of business."

"The nation has been experiencing an economic boom with low interest rates, high growth, and strong job creation because we haven't saddled Main Street America with high taxes. Over the last two years our projected deficit dropped by nearly $150 billion because of higher than expected tax revenues and that's a result of our tax policies. We need to reduce spending and promote economic growth to reign in our deficits, and this tax bill is an important part of that effort."

"There's a reason our economy beat a recession, the 9-11 terrorist attacks, and an awful hurricane season and that's because of our pro-growth tax policies."

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