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2005S1904-1  05/12/06


By:  Staples                                                    S.C.R. No. 9  



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, Eliminating the deduction for payment of state and 
local sales taxes created a fundamental disparity adversely 
affecting citizens of Texas and other states that do not levy a 
personal income tax and caused the citizens of those states to pay a 
higher percentage of federal taxes than the majority of American 
taxpayers; and
	WHEREAS, The American Jobs Creation Act of 2004 authorized 
the sales tax deduction as an option for taxpayers who itemize 
deductions, letting them choose between deductions for state and 
local income or sales taxes; and
	WHEREAS, The Comptroller of Public Accounts of the State of 
Texas has estimated that the ability to deduct state and local sales 
taxes saves Texans more than $700 million annually and creates more 
than 16,000 Texas jobs that would not be created if the tax burden 
were higher; and
	WHEREAS, The sales tax deduction authorized by the American 
Jobs Creation Act of 2004 was given effect only for the tax years 
2004 and 2005, while the deduction for state income taxes is not 
subject to a similar sunset provision; and
	WHEREAS, Expiration of the sales tax deduction will again 
foster the inequitable treatment of individual taxpayers and will 
work unfairly against states whose tax structure has no general 
individual income tax and relies heavily on sales taxes; 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 enjoyed by the majority of American taxpayers; 
now, therefore, be it
	RESOLVED, That the 79th Legislature of the State of Texas, 
3rd Called Session, hereby respectfully request that the Congress 
of the United States permanently extend the federal income tax 
deductibility of state and local sales taxes that was provided for 
the tax years 2004 and 2005 under the American Jobs Creation Act of 
2004; 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.


Memorializing Congress to permanently extend the federal income tax 
deductibility of state and local sales taxes.