Paul Joins Effort to Make State Sales Tax Deduction Permanent

February 9, 2005    Washington, DC:  Congressman Ron Paul and other members of the Texas congressional delegation have joined Congressman Kevin Brady in working to create a permanent states sales tax deduction.  This campaign will correct an injustice that affects millions of Texas taxpayers.

Most American taxpayers are able to deduct their state income taxes from their federal tax bill.  Until 1986, citizens of Texas and other states with no income tax were allowed to claim a federal tax deduction for state sales taxes.  In 1987, however, that state sales tax deduction was eliminated.  As a result, Texas taxpayers have been unfairly penalized.

At the end of 2004, Congress passed a larger tax bill that restored the state sales tax deduction for 2 years.  New legislation is needed, however, to ensure the deduction becomes permanent and Texans never pay more federal taxes than residents of other states.  Congressman Paul and his House colleagues from Texas will work with Congressman Brady as cosponsors of legislation before the House Ways and Means committee, and the delegation is committed to passing the bill before the 2 year provisional measure expires.