MB on Floor Related Documents State and Local Sales Tax Deduction Expansion Alternate 1040 Grover Norquist: ATR Supports Blackburn Plan National Taxpayers Union Foundation: Support for Blackburn Proposal H.R. 378: Blackburn's 1% Spending Cut Bill H.R. 377: Blackburn's 2% Spending Cut H.R. 381: Blackburn's 5% Spending Cut H.R. 379 Sales Tax Deduction Expansion Act

Washington, Jan 14 - Congressman Marsha Blackburn (TN-7) today announced the introduction of several pieces of legislation designed to keep the Federal Government fiscally responsible and aid in economic recovery.

Fiscal Responsibility: Inspired by her days in the Tennessee State Senate, Congressman Blackburn has introduced these bills during each of her three previous terms. The 111th Congress is no exception.

• H.R. 378 : Imposes a 1% across the board cut in discretionary, non-defense, non-homeland security spending. Potential taxpayer savings, based on 2009 funding levels: $6 Billion.
• H.R. 377: Imposes a 2% across the board cut in discretionary, non-defense, non-homeland security spending. Potential taxpayer savings, based on 2009 funding levels: $12 Billion.
• H.R. 381 : Imposes a 5% across the board cut in discretionary, non-defense, non-homeland security spending. Potential taxpayer savings, based on 2009 funding levels: $30 Billion.

“We all know that we can’t spend our way out of this recession. Our federal debt is reaching historic proportions, and additional stimulus bills are only going to inflate it. At some point the appetite for American debt will dry up and then we will be in real trouble. The problem is we don’t know what that market limit is. To keep from hitting it, we need to exercise some responsibility and show some restraint.”

Economic Stimulus: Blackburn re-introduced her “Sales Tax Deduction Expansion Act” as H.R. 379 . The act will allow all Americans to deduct both their state income tax and state and local sales taxes from their federal income tax. In the nine states, including Tennessee, that do not have a state income tax and are currently able to deduct their state sales tax; residents save an average of $650 per year.

“Nearly every state and municipality is hiking a sales tax to cover their losses due to the economy. This hits the taxpayer’s pocket book when they can least afford it. My bill would provide a federal rebate of sorts to help get families through this tough time.”

Blackburn’s original proposal to her colleagues is available on this page, along with a chart that demonstrates what a 1040 Schedule A form would look like after the “Sales Tax Deduction Expansion Act” is passed.