Support Growing For Sales Tax Deductibility

by Mike Godfrey, Tax-News.com, Washington

07 July 2003

House Majority Leader Tom DeLay (R - Texas) has expressed support for a proposal that would allow taxpayers the right to choose whether they wish to deduct sales or income tax on their tax returns, thus levelling the playing field for the nine states that do not levy an income tax.

"The federal government shouldn't discriminate against people because of where they live," commented DeLay recently. "It's not fair that millions of Americans are being denied millions of dollars simply because their states can function without an income tax."

Several Representatives are championing the campaign to get the tax code amended so that taxpayers can deduct sales tax from their returns including Rep. Tom Feeney (R - Florida) who is currently attempting to force the change in his home state of Florida. Others include Rep. Kevin Brady (R - Texas) and George Nethercutt (R - Washington) whose state legislatures have already passed motions supporting the lobbying of Congress to change the law.

The nine affected states that do not levy any general state income tax include Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. According to the IRS, some 6 million taxpayers in these states would benefit from a change in the rules.

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