Washington, D.C. - Congressman Ron Paul was very pleased that language from HR 16, of which he was an original cosponsor, was incorporated into the final text of the budget passed earlier today. As a result, the deduction for state and local sales taxes will likely be permanently available to taxpayers. Without the inclusion of this language, the provision allowing for sales tax deductibility would have to be renewed and extended every year.
This deduction is especially important for tax fairness in states like Texas that fund government mostly through sales taxes and do not have a state income tax. State income taxes are automatically deductible from federal income taxes.
“Now, more than ever, Americans need relief from the overbearing costs of government and I am pleased that at least this measure was included in an otherwise very bad budget. I have many tax relief measures that I am fighting for this Congress to give taxpayers a break and let them keep more of what they work so hard for,” stated Congressman Ron Paul.