SALT Fairness for Working Families Act

The SALT Fairness for Working Families Act, also known as Bill 118 hr 2660, is a piece of legislation currently being considered in the US Congress. This bill aims to restore the full state and local tax (SALT) deduction for middle-class families.

The SALT deduction allows taxpayers to deduct state and local taxes from their federal tax returns. However, the Tax Cuts and Jobs Act of 2017 limited this deduction to $10,000, which disproportionately affects middle-class families in high-tax states.

The SALT Fairness for Working Families Act seeks to address this issue by fully restoring the SALT deduction for individuals making up to $400,000 and couples making up to $800,000. This would provide much-needed tax relief for middle-class families who are facing higher tax burdens due to the cap on the SALT deduction. Supporters of the bill argue that restoring the full SALT deduction will help alleviate the financial strain on working families and allow them to keep more of their hard-earned money. However, opponents of the bill argue that it would primarily benefit wealthier individuals who itemize their deductions. Overall, the SALT Fairness for Working Families Act is a contentious piece of legislation that aims to address the inequities created by the cap on the SALT deduction. Its fate in Congress remains uncertain as lawmakers continue to debate its merits and potential impact on taxpayers.