Bill 119 HR 430, also known as the SALT Deduction Repeal Act, aims to make changes to the Internal Revenue Code of 1986 by repealing the limitation on the deduction for certain taxes, such as State and local property and income taxes.
Currently, taxpayers are limited in the amount of State and local taxes they can deduct from their federal tax returns. This limitation has been a point of contention for many taxpayers, especially those in high-tax states who feel they are being unfairly penalized.
If passed, this bill would remove the cap on deductions for State and local taxes, allowing taxpayers to deduct the full amount of these taxes from their federal tax returns. This could potentially provide relief for taxpayers in high-tax states who have been negatively impacted by the current limitation.
Supporters of the bill argue that it would provide much-needed tax relief for middle-class families and help to alleviate the burden of high State and local taxes. However, opponents of the bill argue that it could lead to a decrease in federal tax revenue and benefit wealthier individuals who pay higher State and local taxes.
Overall, the SALT Deduction Repeal Act is a significant piece of legislation that could have far-reaching implications for taxpayers across the country. It will be important to closely monitor the progress of this bill as it moves through the legislative process.