SALT Fairness for Working Families Act

Bill 119 HR 246, also known as the SALT Deductibility Act, aims to amend the Internal Revenue Code of 1986 in order to increase the limitation on the amount individuals can deduct for certain State and local taxes. Currently, the Tax Cuts and Jobs Act of 2017 capped the deduction for state and local taxes (SALT) at $10,000, which has been a point of contention for many taxpayers in high-tax states.

The SALT Deductibility Act seeks to raise this cap, allowing individuals to deduct a higher amount of their state and local taxes on their federal tax returns. This change would provide relief to taxpayers in states with high income and property taxes, such as California, New York, and New Jersey, who have been disproportionately affected by the $10,000 cap.

Supporters of the bill argue that it is necessary to restore fairness to the tax code and alleviate the burden on middle-class families in high-tax states. They believe that allowing individuals to deduct more of their state and local taxes will help to offset the impact of the cap and provide much-needed relief to taxpayers. Opponents of the bill, however, argue that increasing the deduction for state and local taxes would primarily benefit wealthier individuals who itemize their deductions, rather than lower and middle-income taxpayers who take the standard deduction. They also argue that raising the cap would result in a loss of revenue for the federal government, potentially leading to higher deficits. Overall, the SALT Deductibility Act is a contentious piece of legislation that has sparked debate among lawmakers and taxpayers alike. Its fate remains uncertain as it makes its way through the legislative process in Congress.