H.R. 1142 - Stop Attacking Local Taxpayers (SALT) Act of 2019

116TH CONGRESS
1ST SESSION

H.R. 1142

To amend the Internal Revenue Code of 1986 to repeal
the dollar limitation on the deduction for State and local taxes
and restore the 39.6 percent individual income tax rate bracket.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 11, 2019

Mr. PASCRELL (for himself, Mr. SMITH of New Jersey, Mr. KIM,
Mr. HIGGINS of New York, Mr. DANNY K. DAVIS of Illinois,
Mr. ROUDA, Mr. ENGEL, Ms. NORTON, Mrs. NAPOLITANO,
Mr. SUOZZI, Miss RICE of New York, Mr. GARAMENDI,
Mr. LARSON of Connecticut, Mr. PALLONE, Ms. DELAURO,
Mr. RUPPERSBERGER, Mrs. WATSON COLEMAN, Mr. NORCROSS,
Mr. MALINOWSKI, Mr. SIRES, Mr. LOWENTHAL, Mr. PAYNE,
Mr. SEAN PATRICK MALONEY of New York, Mr. MEEKS, Ms. JUDY
CHU of California, Mr. COSTA, Mr. GOMEZ, Ms. MCCOLLUM,
Mr. RUSH, Mr. PANETTA, Mr. BRENDAN F. BOYLE of Pennsylvania,
Ms. MENG, Mr. COURTNEY, and Ms. SÁNCHEZ) introduced
the following bill; which was referred
to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to repeal the dollar limitation on the deduction for State and local taxes and restore the 39.6 percent individual income tax rate bracket.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Stop the Attack on Local Taxpayers Act of 2019" or the "SALT Act".

SECTION 2. REPEAL OF DOLLAR LIMITATION ON DEDUCTION FOR STATE AND LOCAL TAXES.

(a) IN GENERAL. — Section 164(b)(6) of the Internal Revenue Code of 1986 is amended by striking all that follows "January, 2026" and inserting ", foreign real property taxes (other than such taxes paid or accrued in carrying on a trade or business or an activity described in section 212) shall not be taken into account under subsection (a)(1).".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2018.

SEC. 3. RESTORATION OF 39.6 PERCENT RATE BRACKET FOR INDIVIDUALS.

(a) IN GENERAL. —

(1) MARRIED FILING JOINTLY AND SURVIVING SPOUSES. — The table contained in section 1(j)(2)(A) of the Internal Revenue Code of 1986 is amended by striking "Over $400,000" and all that follows and inserting the following:".

(2) HEADS OF HOUSEHOLD. — The table contained in section 1(j)(2)(B) of such Code is amended by striking "Over $200,000" and all that follows and inserting the following:

(3) UNMARRIED INDIVIDUALS. — The table contained in section 1(j)(2)(C) of such Code is amended by striking "Over $200,000" and all that follows and inserting the following:

(4) MARRIED FILING SEPARATELY. — The table contained in section 1(j)(2)(D) of such Code is amended by striking "Over $200,000" and all that follows and inserting the following:

(b) INFLATION ADJUSTMENTS TO 39.6 PERCENT RATE. —

(1) IN GENERAL. — Section 1(j)(3)(A) of such Code is amended by inserting "(January 1, 2020, in the case of so much of the tables as relates to amounts to which the 39.6 percent rate applies)" after "January 1, 2019".

(2) ADJUSTMENT RULES. — Section 1(j)(3)(B) of such Code is amended —

(A) in the matter preceding clause (i), by inserting "(December 31, 2019, in the case of so much of the tables as relates to amounts to which the 39.6 percent rate applies)" after "December 31, 2018",

(B) in clause (i), by inserting "except as provided in clause (iv)" before "subsection (f)(3) shall", and

(C) by striking "and" at the end of clause (ii), by striking the period at the end of clause (ii) and inserting ", and", and by adding at the end the following new clause:

"(iv) in the case of so much of the tables as relates to amounts to which the 39.6 percent rate applies, subsection (f)(3) shall be applied by substituting 'calendar year 2018' for 'calendar year 2016' in subparagraph (A)(ii) thereof.".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2018.