By Denny, Carter, Berlanga, Turner of Harris, H.C.R. No. 217 75R12677 CCK-D HOUSE CONCURRENT RESOLUTION 1-1 WHEREAS, Congressional tax legislation in 1986 eliminated the 1-2 deductibility of state sales taxes by federal income tax filers, 1-3 while simultaneously retaining deductibility for state income 1-4 taxes; and 1-5 WHEREAS, This change has worked against Texas, whose state 1-6 tax structure relies heavily on sales taxes, and to the benefit of 1-7 states whose tax structure centers on state-level income taxes; and 1-8 WHEREAS, Changes contemplated by the 75th Legislature would 1-9 further widen the interstate deductibility gap, by both broadening 1-10 the sales tax base and reducing the property taxes that remain 1-11 federally deductible; and 1-12 WHEREAS, Texas derives more than 55 percent of its current 1-13 tax revenue from the sales tax, a significant percentage increase 1-14 since the early 1980s, when the corresponding figure was less than 1-15 40 percent; and 1-16 WHEREAS, Only 17 percent of Texas filers claim deductions for 1-17 taxes paid, compared to 28 percent of Americans generally, and 1-18 deductions for taxes paid as a percentage of adjusted income are 1-19 almost three times higher nationally than among Texas taxpayers; 1-20 and 1-21 WHEREAS, Opposition to state-level income taxes among Texans 1-22 is strong, as is resistance to high local property taxes, and that 1-23 position should not be penalized in the form of federal favoritism 1-24 that encourages one type of state tax structure over another; now, 2-1 therefore, be it 2-2 RESOLVED, That the 75th Legislature of the State of Texas 2-3 hereby respectfully request the Congress of the United States to 2-4 restore the federal income tax deductibility of state sales taxes; 2-5 and, be it further 2-6 RESOLVED, That the Texas secretary of state forward official 2-7 copies of this resolution to the president of the United States, to 2-8 the speaker of the house of representatives and the president of 2-9 the senate of the United States Congress, and to all the members of 2-10 the Texas delegation to the congress with the request that this 2-11 resolution be officially entered in the Congressional Record as a 2-12 memorial to the Congress of the United States of America.