Conference negotiators for the House and Senate for the pending tax relief bill (HR 4250) have included a provision allowing the deductibility of sales taxes in calculating your federal income tax liability. The provision would allow people to deduct the greater of your state income tax liability or your sales tax expenditures in calculation your tax liability for 2004 and 2005.
The provision equalizes the tax treatment of citizens in 7 states without state income taxes.
Talk about putting money back in the hands of the middle class! Retroactive nonetheless.