Estes applauds sales tax deduction extension
Austin, TX - State Senator Craig Estes (R-Wichita Falls) praised the hard work of our Texas Congressional delegation in extending the deductibility of our state and local sales taxes from our federal income taxes.
In the final hours of the 109th Congress, lawmakers passed a measure to extend the sales deduction for another two years.
"I have closely watched this tax deduction since I first passed a Senate Resolution calling on the federal government to end the unfair over taxation on Texas taxpayers three years ago," Estes said.
Texas is one of seven states that do not use a state income tax to fund government, opting instead for sales taxes. The federal income tax allows for state income taxes to be deducted, giving an unfair tax advantage to those states with an income tax while providing no benefit for non-income tax states. The extension, first enacted two years ago, levels the playing field among all states and helps end the over taxation of non-income tax states to the amount of nearly $5.5 billion per year.
"I agree with Senator Kay Bailey Hutchison when she said 'all Americans should be treated equally' when deducting their state taxes," added Estes. "The goal of lower taxes always goes hand in hand with fair taxation."
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