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.  


Chief Justice Bivins Plans Ceremonial Swearing In With Governor Haslam

Tennessee Supreme Court Chief Justice Jeff Bivins will have a ceremonial swearing in with Governor Bill Haslam at 3:30 p.m. Thursday in the historic Supreme Court chambers within the Capitol. The event is open to the public.  Chief Justice Bivins was unanimously elected chief by the Court last month. He was appointed to the Court in 2014 by Governor Bill Haslam and was elected ... (click for more)

The CPR LifeWrap Launch Party Is Friday

The CPR LifeWrap launch party will be held Friday from 5-9 p.m at The Edney, 1100 Market St., 5th Floor.  CPR LifeWrap will be launching its Kickstarter campaign, as well as premiering its new video. There will be guest speakers, food, drinks, live music, mingling and door prizes. (click for more)

County GOP Chairman Says Berke Should Resign For Admittedly Using Encrypted Messaging With Top Staff; Berke, Lee Call It Blatant Partisan Attack

Hamilton County Republican Party Chairman Tony Sanders said Chattanooga Mayor Andy Berke "should immediately resign after admitting that he and his senior staff employ an encrypted message application that neither records or stores messages sent and received for the purpose of official city of Chattanooga business on a government-owned server." He said he was guilty of "deliberates ... (click for more)

Grohn Says Berke Use Of Encrypted Message Service Was Deliberate Attempt To Avoid Open Records

City Councilman Larry Grohn said Friday  that the use of an encrypted message service by Mayor Andy Berke was a deliberate attempt to avoid the Open Records Act. Councilman Grohn, who is running for mayor, said, " In recent days, there has been one story after another come out concerning how the Mayor and his head staffers have used end-to-end encryption apps to ... (click for more)

Who's Investigating The Mayor And His Administration?

Thank you, Tony Sanders, for having the courage to stand up and speak out about the mayor and his current administration using an encryption app for text communications.  Making a public statement against the mayor could not have been easy.  This current administration has shown it can be mean spirited and vindictive.  I applaud your audacity.  As a citizen ... (click for more)

Roy Exum: The Knobfather & Me

I’ve seen some beautiful things in my life. I’ve eaten dinner inside the Eiffel Tower with the city of Paris all aglitter below. I’ve been sprayed by champagne in the Dallas Cowboys’ dressing room after they won the Super Bowl. I’ve stood both at the top and at the bottom of the Grand Canyon. I’ve snorkeled in the Great Exuma islands, learned to snow ski in the Austrian Alps, and ... (click for more)