September 9, 2004

            Hall is an original co-sponsor of the provision that was included in the American Jobs Creation Act, which passed the House on June 17, 2004.  “Our bill contains provisions allowing taxpayers in Texas and other states that have no state income tax to deduct state and local general sales taxes from their Federal income taxes,” Hall stated.  “The provision provides greater equity and fairness in the tax code, helps boost state economies, and provides further tax relief to taxpayers and small businesses.” 

The amount of the sales tax deduction would be determined by the Treasury Department.  Tables would be based on the average consumption by taxpayers, on a state-by-state basis, taking into account filing status, number of dependents, adjusted gross income, and rates of state and local general sales taxation.  The deduction would be effective for 2004 and 2005.

“I have joined with our Texas senators, Kay Bailey Hutchison and John Cornyn, and Members of Congress from Tennessee, Texas, Wyoming, South Dakota, Nevada, Washington, and Florida to push for the inclusion of the language in the final House-Senate Conference Committee report,” Hall said.    

            “I’m hopeful we can pass a bill before the end of the session that will level the playing field for all citizens and states,” Hall said.  “The sales tax deduction will go a long way towards providing tax relief to Texans who are unfairly burdened with paying a greater share of Federal taxes simply because they live in a state with no income tax.”