By Denny                                             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.