House Passes Bill to Restore State and Local Tax Deductions
WASHINGTON, D.C. — The House of Representatives passed the Restoring Tax Fairness for States and Localities Act which eliminates the marriage penalty and the $10,000 cap on the state and local tax (SALT) deduction implemented under the 2017 Republican Tax Bill.
“The Republicans took a sledgehammer to the deductibility of state and local taxes in their huge tax bill of 2017 by capping the SALT deduction at $10,000 for both individuals and married couples. This has had a huge impact on 194,160 of my constituents who claimed an average deduction of $63,083 in 2017. I voted against the bill precisely because of this unfair policy which represents an assault on the middle class,” Rep. Eshoo said. “The good news is that the House passed the Restoring Tax Fairness for States and Localities Act to eliminate the marriage penalty this year and the SALT deduction cap altogether in 2020 and 2021.”
To watch Rep. Eshoo’s floor speech, click HERE.
The Restoring Tax Fairness for States and Localities Act passed by a vote of 218 to 206. The legislation eliminates the marriage penalty by doubling the cap to $20,000 for joint filers for 2019 and fully restores the SALT deduction for 2020 and 2021. The cost of the plan is fully offset by returning the top individual tax rate from 37 percent back to 39.6 percent, the rate prior to the 2017 Republican Tax Bill.
Rep. Eshoo is an original cosponsor of the Restoring Tax Fairness for States and Localities Act. In June, Rep. Eshoo testified before the Ways and Means Committee to advocate for a repeal of the cap on the SALT deduction that is retroactive for the 2018 tax year.