By:  Estes, et al.                                              S.C.R. No. 1  
	(In the Senate - Filed January 9, 2003; February 6, 2003, 
read first time and referred to Committee on Finance; 
April 28, 2003, reported favorably by the following vote:  Yeas 14, 
Nays 0; April 28, 2003, sent to printer.)


SENATE CONCURRENT RESOLUTION

	WHEREAS, The Tax Reform Act of 1986 eliminated the 
deductibility of state and local sales taxes paid by federal income 
tax return filers while it retained the deductibility of state and 
local income taxes; and
	WHEREAS, Although the tax legislation was generally designed 
to simplify the federal income tax, eliminating the deduction for 
payment of state and local sales taxes created a fundamental 
disparity adversely affecting citizens of Texas and eight other 
states that do not levy a personal income tax; and
	WHEREAS, While citizens in the 41 other states continue to 
deduct state and local income taxes, thereby reducing their federal 
income tax liability, taxpayers in Texas and a few other states have 
no corresponding tax deduction to ease their burden; the net effect 
of this imbalance is that Texans and citizens of eight other states 
pay a higher percentage of federal taxes than the majority of 
American taxpayers; and
	WHEREAS, In addition to fostering the inequitable treatment 
of individual taxpayers, this disparity also has worked against the 
states whose tax structure has no general individual income tax and 
relies heavily on sales taxes; and
	WHEREAS, A report published in March, 2002, by the 
Comptroller of Public Accounts of the State of Texas estimated that 
the inability to deduct state and local sales taxes could cost 
Texans more than $700 million for the 2002 tax year and, if the 
deductions are not restored, could cost the state more than 16,000 
jobs that otherwise would be created with a lower tax burden and an 
increase in disposable family income; and
	WHEREAS, According to the report, reinstating the 
deductibility of state and local sales taxes on federal income tax 
returns could generate substantial benefits for Texas families and 
the state's economy; and
	WHEREAS, A family of four with an income of $60,000 could get 
an additional federal income tax deduction of $1,015, and a single 
mother with one child and an income of $35,000 could deduct an 
additional $641; and
	WHEREAS, The comptroller of public accounts estimates that 
the more than $700 million in net tax savings that would stay in 
Texas could encourage $590 million in new investments within the 
state and an $874 million increase in the gross state product in 
2003; and
	WHEREAS, As a matter of equity and fairness, Texans and the 
citizens of other states that finance their budgets without an 
income tax deserve to benefit from federal income tax deductions 
comparable to those already enjoyed by the majority of United 
States taxpayers; federal legislation that reinstates the 
deductibility of state and local sales taxes is currently before 
the congress; now, therefore, be it
	RESOLVED, That the 78th Legislature of the State of Texas 
hereby respectfully request the Congress of the United States to 
restore the federal income tax deductibility of state and local 
sales taxes that existed before 1986; and, be it further
	RESOLVED, That the Texas secretary of state forward official 
copies of this resolution to the president of the United States, to 
the speaker of the house of representatives and the president of the 
senate of the United States Congress, and to all the members of the 
Texas delegation to the congress with the request that this 
resolution be officially entered in the Congressional Record as a 
memorial to the Congress of the United States of America.



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