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.  



Chattanooga Chamber Calendar Of Events For Oct. 23-27

TUES/24 East Brainerd Council Meeting 11:30 a.m. - 1 p.m. Car Barn:  6721 Heritage Business Court Speaker: Steven Wagner, Erlanger Children's Hospital $12.   TUES/24 Grand Re-Opening of Food City 5 - 5:30 p.m. Food City:  7804 E. Brainerd Rd .   THUR/26 Reality Check - East Ridge High School ... (click for more)

Catherine Heigel Named Chief Operating Officer For Elliott Davis

Catherine Heigel, the former director of the South Carolina Department of Health and Environmental Control, has returned to Elliott Davis, LLC as its chief operating officer.  In this role, Ms. Heigel manages the firm’s operational support functions, including legal, information technology, human resource, marketing and communications, and firm administration. In addition, ... (click for more)

Signal Mountain To Hold Public Meetings On Idea Of Setting Up Own School System

Discussion about follow-up public meetings regarding the Signal Mountain School System Viability Committee (SMSSVC) report dominated the council’s work session on Friday afternoon. Council member Dan Landrum’s opinion about how to proceed differed from the other four council members. Mr. Landrum argued to end the study and to hold no public meetings. His reason was that of the 738 ... (click for more)

Man Shot Multiple Times In Cleveland; Jesus Teague, 14, Is Arrested

On Saturday, at 6:12 a.m., Cleveland Police Department responded to 1210 Elrod Place SE in reference to a domestic disturbance.   A man sustained multiple gunshot wounds and was transported to Erlanger by Life Force. His condition is stable, at this time.   The suspect, Jesus Tyler Teague, 14, was located and was in custody as of 3:25 p.m. ... (click for more)

October Is Breast Cancer Awareness Month: Myth And Fact Check

My husband and I recently had the privilege of participating in the American Cancer Society’s Making Strides Against Breast Cancer Walk in Chattanooga. I listened as my husband told the audience about how his mother was diagnosed with breast cancer when he was nine and how she died from the disease when he was fourteen. As a child, my husband didn’t understand what breast cancer ... (click for more)

Roy Exum: It’s All About People

The leaders of Hamilton County’s Mental Health Court held a heart-warming open house Friday afternoon and it was announced that just since February, the creation has saved the county over $3 million in incarceration costs. But to hear County Mayor Jim Coppinger or Judge Don Poole tell it, that’s not what is important. “Soon after the court started, a kind, quiet man I’ll ... (click for more)