New legislation, the SALT Fairness for Working Families Act, increases the limit individual filers can deduct for state and local tax payments to $15,000 from $10,000. Jointly filing married couples would be allowed to deduct up to $30,000 for state and local tax payments.
The bill, H.R. 246, introduced by Rep. Lauren Underwood, D-Ill., was first introduced in 2019.
The Trump tax cuts enacted in 2017 "disproportionately harmed northern Illinoisans by capping the SALT deduction at $10,000 preventing taxpayers from deducting the full amount of their state and local taxes, which include property taxes, on their federal tax returns," Underwood said in a statement.
The SALT Fairness for Working Families Act "would help save taxpayers money by increasing the SALT deduction cap to $15,000 and eliminating the marriage penalty," Underwood said.
The House Ways and Means Committee plans to hold a hearing Tuesday on the need to make the Trump tax cuts permanent.
President-elect Donald Trump has backed eliminating the SALT deduction cap.
House Republicans from New York, California and New Jersey unhappy with the cast recent talks on the issue with Donald Trump as “positive” but described no firm commitments from the president-elect, according to Bloomberg.
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