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Financial Planning > Tax Planning > Tax Deductions

SALT Deduction Bill Fails Test Vote in House

By Melanie Waddell

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House lawmakers shot down by a 195-225 procedural vote late Wednesday legislation to double the state-and-local tax deduction cap for joint filers, H.R. 7160, the SALT Marriage Penalty Elimination Act.

The House first agreed by a 213-209 vote to a rule to debate the bill on the House floor, but later voted the rule down.

Rep. Mike Lawler, R-N.Y., the bill’s sponsor, said on Bloomberg television that, while disappointed, he’s “not deterred” in continuing to fight for the bill.

In a statement, Lawler said that “almost every single House Democrat — led by the House Minority Leader from New York — voted against lifting the SALT cap and providing real tax relief for millions of New Yorkers.”

“They put partisan politics ahead of what is best for the people they represent and it’s shameful,” Lawler said.

The bill, which could be brought back up at a later time, would double the cap to $20,000 for tax year 2023, if the couple’s adjusted gross income for the year is less than $500,000.

The SALT cap, part of the 2017 tax overhaul during the Trump administration, has long been criticized and targeted by lawmakers from high-tax states like New York and California.

Erica York, senior economist and research manager at the Tax Foundation in Washington, told ThinkAdvisor Tuesday in an email that the bill would “increase the budget deficit, create a new cliff in the tax code, and mostly benefit higher earners, all without improving long-run economic growth.”

Melanie Waddell

@Think_MelanieW

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