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FOR IMMEDIATE RELEASE: March 22, 2007
CONTACT: Geoff Embler or Jamie Loftus

Senate Passes Sen. Hutchison’s State Sales Tax Deduction Amendment


WASHINGTON -- The full Senate today approved Senator Kay Bailey Hutchison’s (R-TX) amendment to the Fiscal Year 2008 Senate Budget Resolution to make permanent the state sales tax deduction, which expires in 2008.

“All Americans should be treated fairly when deducting their state taxes, whether they pay state income taxes or sales taxes,” Sen. Hutchison said. “The ability to deduct our state sales taxes is a simple matter of fairness. Tax relief has driven the economic growth since the recession following the 9/11 attacks and extending the 2001 and 2003 tax cuts is also a top priority.”

On January 4, the first day of the 110th Congress, Sen. Hutchison introduced legislation to provide a permanent state sales tax deduction and marriage penalty tax relief.

Until 2004, sales taxes were not deductible. Congressman Kevin Brady (R-TX) and Sen. Hutchison worked to include this deduction in the 2004 tax relief bill. In 2006, Sen. Hutchison secured a two-year extension of the sales tax deduction, but continues to push for making this equitable deduction permanent.

A video of Sen. Hutchison’s floor statement when she introduced the amendment can be viewed by following this LINK.

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