Estes Pushes Congress for Fair Treatment of Texas Taxpayers
Austin -- State Senator Craig Estes, R-Wichita Falls, has received full support of his colleagues in efforts to persuade the U.S. Congress to restore federal income tax deductions for state and local sales taxes paid by Texans.
Senator Craig Estes of Wichita Falls
Senate Concurrent Resolution 1 authored by Estes and co-authored by all 30 of his colleagues in the Texas Senate was approved Tuesday and sent to the Texas House of Representatives where it is being sponsored by State Representative Talmadge Heflin, R-Houston, chairman of the House Appropriations Committee.
"The purpose of my resolution to the U.S. Congress is to direct their attention to the important issue of tax fairness," Estes said.
His resolution calls on Congress to restore the federal income tax deductibility of state and local sales taxes that existed before 1986. Texas and eight other states are denied fair and equitable tax treatment because they have no state income tax, Estes said.
"This costs Texas taxpayers an additional $700 million in federal income taxes that would otherwise be deducted. The process of allowing certain state residents to deduct their taxes, just because it is in the form of an income tax, is fundamentally unfair and unjust. Whether a state collects taxes from paychecks or at the cash register, our contributions to state and local government should be treated the same and equally deducted," he said.
"It is time for Congress to stop penalizing hard-working Texas families. As Texans and Americans, we are willing to pay our fair share of the burden of federal government; however, we are no longer willing to pay more than our share."
Restoring the sales tax deduction for Texans would result in nearly $590 million in new investments creating nearly 16,000 jobs for the state's economy and adding a projected $66 million in new tax revenue for Texas from increased economic activity, according to the State Comptroller's Office.
# # #