Bush plans to eliminate the federal deduction for state and local taxes as part of the tax-code overhaul. This will hurt states such as California and New York the most, that have state income taxes of 9.5 and 6% resepctively.
From the article:
"Supporters of the change insist the disproportionate effect on blue states is a coincidence, but they acknowledge that the proposal could hurt most in states that voted against Bush."
"Let me put it like this: It certainly isn't something that's a discouragement," said one prominent conservative. "Yes, we talked about this. The fact that it hits blue states is not something that's been missed among Republicans."
http://story.news.yahoo.com/news?tmpl=story&cid=2026&e=3&u=/latimests/20041205/ts_latime
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