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The repeal of the sales tax deduction from the federal tax code in 1986 caused a significant gap between states that raise revenue using an income tax and those using a sales tax. I fought hard to include a sales tax deduction in the American Jobs Creation Act of 2004, which included the 2004 and 2005 tax years.
Recently, the House passed the Estate Tax and Extension of Tax Relief Act, H.R. 5970, with my full support. This bill would extend the sales tax deduction through 2007. Without this deduction, residents in a sales tax state, like Tennessee, pay higher taxes to the federal government compared to a similar taxpayer from states that have an income tax. This is simply unfair.
I will continue fighting to make sure residents of sales tax states and income tax states are treated equally. |
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