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Income Tax curse:
Discard one item of your choice. Every other player must now discard an item or items, totaling at least as much value as the item you discarded. If they don't have enough to pay the full tax, they must discard all their items and lose a level.
The Halfling ability:
You may sell one item each turn for double price (other items are at normal price).
So the question is:
When the Income Tax curse is played, can a halfling use its 'double price' ability when discarding?
Selling is selling. Paying tax, is paying tax. Different actions. Halfling's ability doesn't help in paying taxes.
Discard one item, not Sell one item. There is a major difference between just discarding an item, and selling one. When you sell items over 1000 gold worth you level up, which I certainly would not allow when someone was paying the initial bad stuff of Income Tax.
Jul 7, 2017 at 2:09