Includes Sales Tax Deductions, Repeal of Death Tax

Washington, DC, Jul 29, 2006 -

U.S. Congressman John Carter (TX-31) today voted in favor of H.R. 5970, the Estate Tax and Extension of Tax Relief Act. This comprehensive bill gives relief to Texans by extending through 2007 a provision that allows taxpayers to deduct their State and local sales taxes in lieu of their State and local income taxes. This House-passed bill also includes permanent death tax relief for estates valued at $5 million or less. Without action from Congress, in 2011 the estate tax exemption will drop to $1 million per person and the maximum estate tax rate will increase to 55 percent.

“This bill provides important relief to taxpayers in Central Texas and throughout the country. I am particularly pleased that this bill will allow Texans to deduct State and local sales taxes. Texas taxpayers should not be punished for not having a state income tax. This provision levels the playing field for taxpayers living in states such as Texas,” Congressman Carter said. “This bill once again demonstrates the commitment by the House to eliminate the unfair death tax. Part of the American Dream is building a business to pass down to the next generation. This bill will remove tax barriers that make it nearly impossible for small, family-businesses to succeed from generation to generation.”

HR 5970 also enhances and extends a number of valuable tax relief provisions, such as the Research and Development Tax Credit, the Work Opportunity Tax Credit, above-the-line deduction for out-of-pocket teacher classroom expenses, and the availability of Archer Medical Savings Accounts (MSAs). Finally, the bill increases the Federal minimum wage to $7.25 over three years.