Government

Cornyn urges fairness for Texas taxpayers; Decries obstruction of two key Tax Relief bills

Sales tax deduction legislation will save Texans up to $1 billion each year; College tuition deduction credit bill also being blocked

From the Office of Senator John Cornyn

November 14, 2007

WASHINGTON—U.S. Sen. John Cornyn, in remarks on the Senate floor Nov. 1, urged Senate Democrats to drop their objection of legislation that will provide fairness for
Texas taxpayers and help working families.

The Democrat Chairman of the Senate Finance Committee blocked consideration of a bill co-sponsored by Sen. Cornyn to make the state and local sales tax deduction permanent. The majority is also holding up Sen. Cornyn’s bill to extend for two years an important deduction for taxpayers who pay college tuition. Sen. Cornyn noted these “two important taxpayer-friendly provisions in the IRS Code will disappear within the next 60 days unless we do something about them.”

“ My state of Texas, like a handful of other states, doesn’t believe that we need a state income tax. We don’t have one. We’re not going to get one,” Sen. Cornyn said on the Senate floor. “But what we do want is a level playing field when it comes to the federal income tax code allowing the deduction of the state sales tax just like it allows currently a deduction of the state income tax from one’s federal tax return.”

Sen. Cornyn added: “I view this as a matter of gross discrimination against those states that do not have a state income tax, and I think it’s just simply unfair and it needs to end on a permanent basis. … We are a low-tax, pro-growth state and that’s why we’ve seen three million people move to the state of Texas since 2000, because it provides incentives for job creation by small and big businesses alike. So we’re not asking for the federal government to somehow bless
Texas adopting a state income tax. We don’t want it. But what we do want is fundamental fairness.”

“ Extending the sales tax deduction effectively gives Texans $1 billion in tax relief every year. And this money not only helps hard-working middle-class families save money, perhaps to invest in a small business or pay for college tuition for their children; it helps spur economic growth and job growth as well.”

Sen. Cornyn also said the Democrats should end their hold on his tax relief legislation to make college more affordable. This college tuition deduction credit bill extends for two years a provision allowing taxpayers to deduct up to $4,000 from their federal income tax return regardless of whether or not they itemize deductions. “We ought to do our best to make college more affordable and more accessible and less of a burden on working parents who want to send their kids to college. … This deduction goes a long way to help families struggling to put kids through college and benefits millions of taxpayers annually.”

“ Both of these deductions keep money in the pockets of taxpayers … rather than writing a bigger check to Uncle Sam. It is appropriate to use the IRS Code not only to provide for fundamental fairness when it comes to allowing the deduction of state sales tax, it’s also appropriate to use the IRS Code to provide for further educational opportunity. … The last thing we should do is force taxpayers to work more hours, longer days for Uncle Sam and not for their family. Rather than waiting for some future bill to hopefully address this need, the Senate should extend these taxpayer-friendly provisions today,” Sen. Cornyn concluded.

Sen. Cornyn serves on the Armed Services, Judiciary and Budget Committees. In addition, he is Vice Chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee’s Immigration, Border Security and Refugees subcommittee and the Armed Services Committee’s Airland subcommittee.