Cornyn Encourages Texans To Take Advantage Of Sales Tax Deduction
Press Release
Cornyn Encourages Texans To Take Advantage Of Sales Tax Deduction
U.S. Sen. John Cornyn, a member of the Budget Committee, encouraged Texans to take advantage of the sales tax deduction when filing their federal income tax returns this year. Congress passed legislation last year that included provisions to provide important tax relief for Texans by extending the sales tax deduction for two years.
"We passed critical legislation last year to extend the sales tax deduction, which puts our state's taxpayers on a level playing field with those in other states who can deduct their state income tax," Sen. Cornyn said. "I encourage Texans, particularly middle-class families, to take advantage of this important benefit so they can keep more of their hard-earned money."
Sen. Cornyn successfully worked with the Texas congressional delegation last year to help renew the sales tax deduction by including it in the Tax Relief and Health Care Act of 2006, H.R. 6111. The legislation extended the sales tax deduction until the end of 2007, renewing the option for Texas taxpayers to deduct their state and local sales tax on federal income tax returns.It is expected to save Texans more than $1 billion a year in federal taxes.
The Internal Revenue Service printed the federal income tax forms for 2006 before Congress renewed the sales tax deduction, so the paper forms originally mailed out in January do not mention the important sales tax deduction benefit. Sen. Cornyn reminded Texans to look for the additional IRS form that was sent after the renewal was passed.
"Extension of the sales tax deduction option is a victory for freedom and fairness in the tax code for Texans," Sen. Cornyn said. "This measure will provide a direct economic boost to our state's taxpayers and consumers, and benefits middle income families in particular."
Sen. Cornyn remains actively engaged in the effort to make the sales tax deduction permanent and provide tax relief for Texans. He co-sponsored the Permanent Sales Tax Deduction Bill, S. 180, earlier this year and recently co-sponsored the Fair Tax Act.
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