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December 20th, 2006
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Tax reduction aimed at helping families
By JIMMY GALVAN

U.S. CONGRESSMAN KEVIN BRADY talks about sales tax deducation that was recently passed by the House and Senate during a visit to Jasper Friday.
U.S. Congressman Kevin Brady chose a family-owned business in Jasper to announce the passing of a sales tax deduction for two more years.

“There are very few of them these days that have been around for 50 years and we need to celebrate that kind of heritage,” Brady said from the showroom of Jimmy Aud and Son Friday, Dec. 8.

“For the past 18 years, we were discriminated against as other states could deduct their state and local income taxes and a few years ago my office led the effort to change that,” Brady said. “Our goal is to make it permanent.”

The sales tax deduction allows Texas families to deduct the state and local sales tax they’ve paid throughout the year on their federal tax returns.

“For Texas, this is important, not only for fairness but it will save our families one billion dollars a year,” Brady said.

Sales taxes add up fast for families. As an example of what this deduction means to hard working Texas families, the State Comptroller’s Office estimates that a family of four with income $30,000 to $40,000 would qualify for a deduction around $730.

“It doesn’t change the world, but it helps,” Brady said. Brady said since the East

Texas region is still in the process of rebuilding after Hurricane Rita, the sales tax deduction will help out tremendously.

“A lot of people don’t know that home improvements, fixing up after the hurricane with supplies can be deducted as well,” Brady said.

He said the struggle to get the tax relief passed for the past two years stemmed from attempts to package this bill with other “not so popular tax relief bills.”

“Four times we passed this extension through the House with something else on it,” Brady said. “This last time, we put nothing on it and it went right through.”