Currently, there are seven States that collect no income tax from their residents. Those States are my home the State of Nevada, Florida, South Dakota, Tennessee, Texas, Washington, and Wyoming. Under current Federal tax law, in all the States that have an income tax, individuals are allowed to deduct those income taxes from their Federal tax form. Your property taxes can also be deducted. Even when you register your car and pay your registration fee on your car, you are allowed to deduct that because that is a local tax. The tax that you are not allowed to deduct, if we don't extend current law, will be the sales tax. My State relies more on a sales tax for its revenue sources. That is what it decided to do. Other States have chosen to set their taxes up differently. But States have the flexibility to set up their taxes in the way they feel is best for their residents. My State actually has a constitutional amendment against collecting a State income tax from its residents. Nevadans don't want a State income tax, but they want to be treated fairly.
Editor's note · Context
The speaker discusses tax fairness for states without income tax and the importance of sales tax deductions.
Share
More from John Ensign
I want to talk for a while on the Hutchison amendment which says that, while the health care reform bill President Obama and the majority passed last year is going through the courts, any related provisions would be put on hold until the…
This is a very important hearing today and I want to thank all of our witnesses who have taken the time out of their schedules to testify.
The headline reads: Darfuries feel betrayed by Libya no-fly zone. We didn't step in in Darfur. We also didn't help the people of Rwanda. The last time we did try to police a situation such as this was in Somalia, and we all know how that…
The debt that you are talking about, the interest on the debt, you have said that is unsustainable.