Rush Votes to Eliminate the $10,000 Cap on State and Local Tax (SALT) Deductions

Dec 19, 2019
Press Release

WASHINGTON — Today, U.S. Representative Bobby L. Rush (D-Ill.) voted in support of H.R. 5377, the Restoring Tax Fairness for States and Localities Act of 2019.  This bill would eliminate the $10,000 cap on the State and Local Tax (SALT) Deduction, one of the more damaging provisions of the GOP Tax Scam.  The bill would also restore the top individual income tax rate to the pre-GOP Tax Scam levels and double the deduction for educators’ and first responders’ out-of-pocket expenses.

“The Republican tax scam was nothing more than a modern-day smash and grab carried out by the President and his enablers in Congress, amounting to a massive giveaway to the wealthiest tax bracket while middle- and lower-income Americans were left footing the bill.  The Restoring Tax Fairness for States and Localities Act of 2019 reverses this injustice by shifting the tax burden away from the middle class.

“The low cap on this critical deduction was deliberately designed to penalize those Americans living in Democratic congressional districts and has unquestionably harmed Illinoisans across the state.  Moreover, the cap on SALT deductions has undermined crucial state and local investments in public services that benefit the entire community, such as schools, roads, first responders, and public health programs.  Eliminating this cap will not only make the tax code more equitable, but it will also come as a welcome relief to state and local governments who have faced unreasonable pressure to cut revenues and, ultimately, services.

H.R. 5377 also increases the deduction for educators’ and first responders’ out-of-pocket expenses and creates an above-the-line deduction for unreimbursed expenses for those who typically pay out of pocket.  Additionally, the bill would eliminate the marriage penalty in 2019, allowing married couples filing jointly to deduct $20,000 and married couples filing separately to each claim $10,000.

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