Issue date: 9/10/04 Section: News

WASHINGTON - The looming end of the session and fights over other tax cut proposals could abruptly end what several members of Congress said Thursday is the best chance in decades for getting a federal deduction for people whose states only charge sales taxes.

About two dozen lawmakers from both parties gathered in a Senate conference room to rally around the sales tax deduction proposal, which affects a handful of states, including Texas.

"We are not going home without sales tax deductibility," said Rep. Kevin Brady, a member of the House Ways and Means Committee, who has led the push for the deduction.

In addition to Texas, the proposal would benefit Florida, Tennessee, South Dakota, Wyoming, Nevada and Washington. Alaskans, who pay local taxes, also would benefit.

Brady acknowledged the possibility of ending the session empty-handed because Congress is scheduled to adjourn in early October.

Also, the sales tax deduction is part of similar, broader bills passed by the House and Senate that provide corporate tax cuts and eliminate a tax cut for U.S. exporters. A conference committee has yet to meet to negotiate the differences in the bills, because House Speaker Dennis Hastert has not named committee members.

Sen. Kay Bailey Hutchison said the hang-up is not the widely supported sales tax issue. She said negotiations on the corporate tax bill have widened to include discussions on a separate, sweeping energy bill that provides tax incentives for energy-related programs.

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