Alexander Renews Efforts With Blackburn To Preserve State Sales Tax Deduction

Friday, November 16, 2012

Senator Lamar Alexander (R-Tn.) on Friday announced he would be working with Rep. Marsha Blackburn (R-Tn.) to preserve the state sales tax deduction, a provision allowing taxpayers in states with no income tax, such as Tennessee, to deduct their state sales tax payments from their federal income tax.

Senator Alexander said, “Tennesseans shouldn’t pay a greater share of taxes than other taxpayers, simply because we pay sales tax instead of income tax. Preserving this deduction is a matter of fairness, and it will keep an average of $400 in the pockets of more than half-million Tennesseans who itemize their taxes.

“Rep. Blackburn was the leader in restoring the deduction in 2004 and she’s the leader now in the effort to ensure it is extended again.  I look forward to working with her to preserve this important tax provision.”

The U.S. tax code contains a permanent provision allowing for the deduction of state income tax from federal income tax payments. Tennesseans, along with residents of Alaska, Texas, Florida, Wyoming, Washington, South Dakota and Nevada, don’t pay income tax, but allowing deduction of sales taxes has put them on equal footing with taxpayers in other states who can deduct their state income taxes from their federal tax obligation.

The sales tax deduction is not, however, a permanent part of the tax code. Congress passed a tax relief bill in 2004 permitting sales tax deduction for two years. Congress has extended that deduction in two-year increments since.

The deduction expired at the beginning of 2012. A temporary extension is included in the tax extenders bill reported by the Senate Finance Committee, which addresses several expiring tax provisions that make up the "fiscal cliff."

Senator Alexander recently joined Senators Kay Bailey Hutchison (R-Tx.) and Maria Cantwell (D-Wa.) in sending a letter to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell urging the extension of the deduction for state and local sales taxes. 

In 2010, 561,000 Tennesseans claimed the sales tax deduction.  


Santa Fe, Park View Become Official BEST Partners

Santa Fe Cattle Company, located in Bradley Square Mall, says their formula to being the best in the business is simple: They serve great-tasting, high-quality food in a fun atmosphere at a decent price. Likewise, Park View Elementary School, 300 Minnis Road, believes they serve students with a clear purpose and direction in a positive and safe atmosphere where all children feel ... (click for more)

ChaTech Presents Program On The Rise Of Innovation

Chattanooga technology professionals will have the opportunity to hear Rachael Babcock, former chief technology officer for the State of Tennessee, address how the rapid changes in technology have impacted all areas of our lives, introduced disruptive technologies, and now require new leadership paradigms and practices, on Wednesday from 11:30 a.m.-1 p.m. at Business Development ... (click for more)

County Commission Votes 8-1 To Deny Permit For Controversial Bakewell Firing Range

The County Commission voted 8-1 on Wednesday to deny a special exceptions permit for a $2.4 million firing range at Retro-Hughes Road at Bakewell. Only Commissioner Greg Martin was in support. Opponents and supporters were again gathered at the courthouse, but the commission voted without hearing further argument. Commissioner Randy Fairbanks said to him "it is not a gun ... (click for more)

Big Woody's Tree Service Employee Killed In Fall On Signal Mountain

Recovery efforts are underway for a man who fell 150 feet off a bluff, while trimming trees on Signal Mountain. At  11:22 a.m. , a 911 call was made by an employee of Big Woody's Tree Service reporting a man in his early 30s had fallen off a bluff the mountain while trimming trees on private property.  The man fell 150 feet. Walden's Ridge Emergency Services ... (click for more)

Beyond Freedom Of Speech - And Response

Yes, most people know about the First Amendment to our Constitution, "The right, guaranteed by the First Amendment to the U.S. Constitution, to express beliefs and ideas without unwarranted government restriction."  I being a "deplorable" draw the line when people block traffic, try to disrupt, and even stop an activity through malice and disregard for others. Case being ... (click for more)

Roy Exum: Want To Protest? Get Paid!

In a troubling time when “false news” is the rage and people ask me – to my face – if anybody from Russia ever approached me personally searching for votes for President-elect Donald Trump, there appears a website that, to cop a phrase, “is too good to be true.” There is a group out of California that allegedly wants to hire “operatives” to protest Friday’s inauguration. Forget ... (click for more)