The cap on state and local tax deductions (SALT) would be doubled — at least temporarily — if a group of Congressmen get their way.
On Jan. 31, Representatives Mike Lawler (R, NY-17), Andrew Garbarino (R, NY-2), Anthony D’Esposito (R, NY-4), Nick LaLota (R, NY-1), Marc Molinaro (R, NY-19), Andy Harris (R, MD-1), and Young Kim (R, CA-40) introducing the SALT Marriage Penalty Elimination Act. H.R.7160 would increase the SALT cap from $10,000 to $20,000 for married couples with adjusted gross incomes below $500,000 in 2023.
“For 13 months, we have engaged in thoughtful conversations with House Leadership on SALT, a key priority for our constituents,” said the bill’s sponsors in a prepared statement. “Raising the SALT cap for married couples from $10,000 to $20,000 fixes an unfair and anti-family penalty and provides immediate tax relief to middle-class working families.”
The bill was passed 8 to 5 on Feb. 1 by the House Rules Committee, which sets the stage for a floor vote.
According to an analysis of the bill by the University of Pennsylvania, after tax year 2023, the legislation would allow the SALT cap to revert to $10,000 for joint filers until 2026. The cap would expire along with other provisions of the 2017 Tax Cuts and Jobs Act when 2026 starts.
The university’s Penn Wharton Budget Model estimates the U.S. government would lose $12 billion in revenue if the act becomes law.
The SALT cap that became part of the 2017 tax law hurt taxpayers more in Democratically controlled states, like California, New York and New Jersey, where property taxes are among the highest in the country.
