Rep. Veasey Votes in Favor of Tax Extenders Package

Washington, D.C. — Today, Congressman Marc Veasey, TX-33, voted in favor of H.R. 5771, the Tax Increase Prevention Act of 2014, a bill that would renew approximately 50 tax benefits that expired at the end of 2013 or during 2014.

"While today's legislation is not perfect, it is imperative that we offer some form of certainty to individuals and businesses as they begin the process of filing their taxes for 2014," said Veasey. "I am hopeful that we will move forward in the next Congress to enact comprehensive tax reform and pass long-term tax policies that help grow our economy and help individuals succeed."

A key provision in the bill is a tax deduction for state and local sales tax. As residents of Texas do not pay income tax, if this key deduction is not renewed, some Texans will see their share of federal taxes increase significantly. According to the Pew Charitable Trust, nearly 1 in 5 Texans utilized the tax provision last year. In addition, the Texas state comptroller stated that Texas residents run the risk of owing an additional $1.2 billion to the IRS in April if Congress fails to act.

H.R. 5771 included a number of tax extenders to help low- and middle-class families including:

• Extension of the deduction for teacher expenses
• Extension of portions of the mortgage interest deduction
• Extension of the deduction for qualified tuition expenses
• Extension of the New Markets tax credit
• Extension of the Work Opportunity tax credit
• Extension of the energy-efficient new homes credit
• Extension of the wind energy credit

Congressman Veasey has been an advocate in protecting the state's economy. In January 2014, Congressman Veasey signed onto a bi-partisan letter to ensure that the House of Representatives extended the sales tax deduction as part of any tax extenders package.

A copy of the letter can be found below.

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January 29, 2014

The Honorable Dave Camp The Honorable Sander Levin
Chairman Ranking Member
Committee on Ways and Means Committee on Ways and Means
1102 Longworth House Office Building 1106 Longworth House Office Building
Washington, D.C. 20515 Washington, D.C. 20515

Dear Chairman Camp and Ranking Member Levin:

We write to encourage you to include an extension of the state and local sales tax deduction in any tax extenders package the Committee may consider. Extending the sales tax deduction is critical to ensuring equal tax treatment for residents of states that do not collect an income tax.

As you know, the sales tax deduction expired on January 1, 2014. This means a disproportionate number of Americans will shoulder a larger share of the federal tax burden if the deduction is not extended.

More than 20 percent of our nation's population resides in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming, which do not have a state income tax. Instead, these states have opted for a substantial sales tax to finance state and local services. Since residents of these states cannot claim the deduction for state income taxes, extending the sales tax deduction will ensure that millions of Americans are not punished for their state's preferred tax structure.

The sales tax deduction plays a vital role in our states' economies, spurring growth and creating jobs. Congress restored the deduction ten years ago in the "American Jobs Creation Act of 2004" and since then, the deduction has been extended four times with bipartisan support.

While we will continue our push to make this deduction permanent, we urge you and other Members of the Committee to maintain fairness and certainty in the tax code by extending the sales tax deduction. Thank you for your consideration of this request.