Download or read book Federal Deductibility of State and Local Taxes written by and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The interplay between the federal and state and local tax systems through the federal deductibility of state and local taxes is the focus of this report. [...] In 2004, Congress modified the deductibility of state and local taxes - adding the sales tax deduction option for 2004 and 2005 - and the 109th Congress extended the sales tax deduction option for 2006 and 2007. [...] In 2004, Congress modified the deductibility of state and local taxes-adding the sales tax deduction option for 2004 and 2005-and the 109th Congress extended the sales tax deduction option for 2006 and 2007. [...] The deduction from federal income for state and local taxes paid dates from the inception of the current income tax under the Revenue Act of 1913.1 A provision in that act allowed the deduction for "all national, State, county, school and municipal taxes paid within the year, not including 1 The 16th Amendment allowed for the taxation of income without regard to apportionment among t [...] The federal tax savings from the deduction is equal to the taxpayer's marginal tax rate multiplied by the size of the deduction.