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DeLay: Keeping American Jobs in America
Jobs Creation Act Restores Fairness to Texas Taxpayers

WASHINGTON - House Majority Leader Tom DeLay (R-Texas) today said the American Jobs Creation Act, which passed the House by a vote of 251-178, will create more jobs and opportunities for the American people, support our obligations to the World Trade Organization, and restore fairness to the tax code by reinstating the state sales tax deduction.

“This bill will keep American jobs in America,” DeLay said. “It will encourage companies to manufacture more goods and keep more jobs in the United States while maintaining the global competitiveness of the American economy. The American Jobs Creation Act is another important step on the way to our goal of doubling the economy in the next 15 years.”

In addition to strengthening global competitiveness, the American Jobs Creation Act includes an important provision for Texas taxpayers. Currently the residents of 43 states are allowed to deduct their state income tax from their federal taxable income. This means that residents of states like Texas, which does not have a state income tax, carry a higher burden of federal taxes. The American Jobs Creation Act corrects this inequity in the tax code by allowing taxpayers to deduct either their state income tax or their state and local sales taxes in 2004 and 2005.

“This legislation will be a boon to Texas taxpayers,” DeLay noted. “The act restores fairness to the tax code and ensures that states like Texas won’t carry a higher burden of federal taxes.”

The American Jobs Creation Act will do the following:

Ø Reduce the corporate tax rate for domestic manufacturers from 35 percent to 32 percent;

Ø Provide additional tax relief for small businesses, especially small manufacturing companies;

Ø Enhance the competitiveness of U.S.-based companies engaged in the global economy;

Ø Extend more than 20 expiring tax relief provisions; and

Ø Provide taxpayers in every state the choice to deduct either state and local income taxes or state and local sales taxes.