A bill introduced by a group of House lawmakers, including U.S. Rep. Andrew Garbarino (R-NY), would allow taxpayers to fully deduct their state and local taxes on their federal income returns.
The bill — the Securing Access to Lower Taxes by Ensuring (SALT) Deductibility Act (H.R. 2555) – was introduced by several Congress members, including U.S. Reps. Andrew Garbarino (R-NY), Josh Gottheimer (D-NJ), Young Kim (R-CA), Anna Eshoo (D-CA), Chris Smith (R-NJ), Brad Schneider (D-IL), Mike Lawler (R-NY), and Rob Menendez (D-NJ).
Specifically, it would amend Section 164(b) of the Internal Revenue Code to repeal the limitation on the deduction of state and local property and income taxes.
“The SALT deduction cap has devastated my community by placing an unfair financial burden on Long Islanders and on taxpayers across the country,” Garbarino said, delivering remarks at a press conference. “Long Islanders pay some of the highest property taxes in the country and, for the hardworking middle-class families in my district, the $10,000 cap means they are only able to deduct a fraction of what they pay from their federal income taxes. I am talking about police officers, firefighters, nurses, teachers, and small businesses owners who are being double taxed on money that was never available to them. This injustice has gone on long enough, and with this bipartisan legislation, we can finally right that wrong and provide much-needed tax relief to millions of Americans.”
The SALT deduction was capped at $10,000 in 2017 by the Trump Administration and has resulted in a tax increase for many middle-class families, the lawmakers said. When it was first implemented more than a century and a half ago, the initial purpose of the SALT deduction was to prevent imposing federal taxes on top of state and local taxes already paid.
“Prior to President Trump’s 2017 tax law that placed a $10,000 cap on the deduction of state and local taxes, my constituents claimed a $63,083 deduction on their federal taxes on average. Since then, 200,000 families in my Congressional District have paid higher taxes.” Eshoo said. “This cap is an assault on the middle class, and the SALT Deductibility Act will provide essential tax relief for Californians by restoring this vital deduction.”