Mike Thompson: “Section 17 of the House-passed budget resolution for fiscal year 2002, H. Con. Res. 83, contains language relating to an…”

“Section 17 of the House-passed budget resolution for fiscal year 2002, H. Con. Res. 83, contains language relating to an issue that is important to the citizens of my home State of Tennessee, and the citizens of Texas, Wyoming, Florida, South Dakota, Nevada and Washington. The issue is the deductibility of state and local sales taxes. Section 17 of H. Con. Res. 83 states that it is the sense of the House of Representatives that the Committee on Ways and Means should consider legislation to make State sales taxes deductible against Federal income tax. Earlier this year, I introduced the AMT and Tax Deduction Fairness Act of 2001, S. 291. My bill would allow individuals to deduct either their state and local sales taxes, or their state and local income taxes on their federal tax return, but not both. Currently, the federal tax laws discriminate against residents of states like mine that choose to raise revenue primarily through a sales tax, because federal law does not permit a deduction for state and local sales taxes.”