Pete Domenici: “I believe that it is not good federal income tax policy for the code to favor one state's revenue raising scheme over…”

“I believe that it is not good federal income tax policy for the code to favor one state's revenue raising scheme over another state's. This is the situation in the code now. States that have substantial state income taxes, but low or no state sales tax are favored over states that rely exclusively, or more heavily on state sales taxes. A fairness argument can be made for fully restoring the state sales tax deduction, however, to do so would cost the Treasury $83 billion over ten years. Nonetheless, the Senator from Tennessee has raised an important issue, and I pledge to work with my colleague during the conference on the budget resolution to include language regarding the deductibility of state and local sales taxes.”