To amend the Internal Revenue Code of 1986 to provide that no deduction shall be allowed for certain taxes paid to States which tax nonresidents on pension income in an unfair manner.

Amends the Internal Revenue Code to deny a deduction for any tax imposed by a State on the pension income of a resident if the State imposes, assesses, or takes action to collect any tax on the pension income of a nonresident. Sets forth rules for allowable taxation of nonresident pension income.