I 

116TH CONGRESS 

1ST SESSION H. R. 5377 

To amend the Internal Revenue Code of 1986 to modify the limitation 

on deduction of State and local taxes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 10, 2019 

Mr. SUOZZI (for himself, Mr. THOMPSON of California, Mr. PASCRELL, Mr. 

KING of New York, Mr. BEYER, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. JUDY CHU of California, Mr. DANNY K. DAVIS of Illinois, Mr. 

HIGGINS of New York, Mr. LARSON of Connecticut, Mr. PANETTA, Ms. 

SA ́NCHEZ, Mr. SCHNEIDER, Mr. CASTEN of Illinois, Mr. CISNEROS, Mr. 

CORREA, Ms. CRAIG, Mr. ENGEL, Ms. ESHOO, Mr. KIM, Mr. LEVIN of 

California, Mrs. LOWEY, Mr. MALINOWSKI, Mr. MEEKS, Ms. MENG, Mr. 

MORELLE, Mr. NADLER, Mr. PHILLIPS, Ms. PORTER, Mr. RASKIN, Miss 

RICE of New York, Mr. ROSE of New York, Ms. SHERRILL, Mr. SIRES, 

Mr. TRONE, Ms. UNDERWOOD, Mrs. WATSON COLEMAN, Mr. COURTNEY, 

Mr. ESPAILLAT, and Mr. HARDER of California) 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 modify 

the limitation on deduction of State and local taxes, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Restoring Tax Fair5 ness for States and Localities Act’’. 


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1 SEC. 2. ELIMINATION FOR 2019 OF MARRIAGE PENALTY IN 

2 LIMITATION ON DEDUCTION OF STATE AND 

3 LOCAL TAXES. 

4 (a) IN GENERAL.—Section 164(b) of the Internal 

5 Revenue Code of 1986 is amended by adding at the end 

6 the following new paragraph: 

7 ‘‘(7) SPECIAL RULE FOR LIMITATION ON INDI8 VIDUAL DEDUCTIONS FOR 2019.—In the case of a 

9 taxable year beginning after December 31, 2018, 

10 and before January 1, 2020, paragraph (6) shall be 

11 applied by substituting ‘($20,000 in the case of a 

12 joint return)’ for ‘($5,000 in the case of a married 

13 individual filing a separate return)’.’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2018. 

17 SEC. 3. ELIMINATION FOR 2020 AND 2021 OF LIMITATION ON 

18 DEDUCTION OF STATE AND LOCAL TAXES. 

19 (a) IN GENERAL.—Section 164(b)(6)(B) of the Inter20 nal Revenue Code of 1986 is amended by inserting ‘‘in 

21 the case of a taxable year beginning before January 1, 

22 2020, or after December 31, 2021,’’ before ‘‘the aggregate 

23 amount of taxes’’. 

24 (b) CONFORMING AMENDMENTS.—Section 164(b)(6) 

25 of the Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘For purposes of subparagraph 

2 (B)’’ and inserting ‘‘For purposes of this section’’; 

3 (2) by striking ‘‘January 1, 2018’’ and insert4 ing ‘‘January 1, 2022’’; 

5 (3) by striking ‘‘December 31, 2017, shall’’ and 

6 inserting ‘‘December 31, 2021, shall’’; and 

7 (4) by adding at the end the following: ‘‘For 

8 purposes of this section, in the case of State or local 

9 taxes with respect to any real or personal property 

10 paid during a taxable year beginning in 2020 or 

11 2021, the Secretary shall prescribe rules which treat 

12 all or a portion of such taxes as paid in a taxable 

13 year or years other than the taxable year in which 

14 actually paid as necessary or appropriate to prevent 

15 the avoidance of the limitations of this subsection.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2019. 

19 SEC. 4. INCREASE OF TOP MARGINAL INDIVIDUAL INCOME 

20 TAX RATE UNDER TEMPORARY RULES. 

21 (a) IN GENERAL.—The tables contained in subpara22 graphs (A), (B), (C), (D), and (E) of section 1(j)(2) of 

23 the Internal Revenue Code of 1986 are each amended by 

24 striking ‘‘37%’’ and inserting ‘‘39.6%’’ and— 

25 (1) in subparagraph (A)— 


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1 (A) by striking ‘‘$600,00’’ each place such 

2 term appears and inserting ‘‘$479,000’’; and 

3 (B) by striking ‘‘$161,379’’ and inserting 

4 ‘‘$119,029’’; 

5 (2) in subparagraph (B)— 

6 (A) by striking ‘‘$500,000’’ each place 

7 such term appears and inserting ‘‘$452,400’’; 

8 and 

9 (B) by striking ‘‘$149,298’’ and inserting 

10 ‘‘$132,638’’; 

11 (3) in subparagraph (C)— 

12 (A) by striking ‘‘$500,000’’ each place 

13 such term appears and inserting ‘‘$425,800’’; 

14 and 

15 (B) by striking ‘‘$150,689.50’’ and insert16 ing ‘‘$124,719.50’’; and 

17 (4) in subparagraph (D)— 

18 (A) by striking ‘‘$300,000’’ each place 

19 such term appears and inserting ‘‘$239,500’’; 

20 and 

21 (B) by striking ‘‘$80,689.50’’ and insert22 ing ‘‘$59,514.50’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Section 1(j)(4)(B)(iii) of the Internal Rev25 enue Code of 1986 is amended— 


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1 (A) in the matter preceding subclause (I), 

2 by striking ‘‘37 percent’’ and inserting ‘‘39.6 

3 percent’’; 

4 (B) in subclause (II), by striking ‘‘37-per5 cent bracket’’ and inserting ‘‘39.6-percent 

6 bracket’’; and 

7 (C) in the heading, by striking ‘‘37-PER8 CENT BRACKET’’ and inserting ‘‘39.6-PERCENT

9 BRACKET’’. 

10 (2) Section 1(j)(4)(C) of such Code is amend11 ed— 

12 (A) in clause (i)(II), by striking ‘‘para13 graph (5)(B)(i)(IV)’’ and inserting ‘‘paragraph 

14 (5)(B)(iv)’’; and 

15 (B) by amending clause (ii) to read as fol16 lows: 

17 ‘‘(ii) the amount which would (without 

18 regard to this paragraph) be taxed at a 

19 rate below 39.6 percent shall not be more 

20 than the sum of— 

21 ‘‘(I) the earned taxable income of 

22 such child, plus 

23 ‘‘(II) the maximum dollar 

24 amount for the 35-percent rate brack25 et for estates and trusts.’’. 


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1 (3) The heading of section 1(j)(5) of such Code 

2 is amended to read as follows: ‘‘APPLICATION OF

3 ZERO PERCENT CAPITAL GAIN RATE BRACKETS’’. 

4 (4) Subparagraphs (A) and (B) of section 

5 1(j)(5) of such Code are amended to read as follows: 

6 ‘‘(A) IN GENERAL.—Subsection 

7 (h)(1)(B)(i) shall be applied by substituting 

8 ‘below the maximum zero rate amount’ for 

9 ‘which would (without regard to this paragraph) 

10 be taxed at a rate below 25 percent’. 

11 ‘‘(B) MAXIMUM ZERO RATE AMOUNT DE12 FINED.—For purposes of subparagraph (A), the 

13 term ‘maximum zero rate amount’ means— 

14 ‘‘(i) in the case of a joint return or 

15 surviving spouse, $77,200, 

16 ‘‘(ii) in the case of an individual who 

17 is a head of household (as defined in sec18 tion 2(b)), $51,700, 

19 ‘‘(iii) in the case of any other indi20 vidual (other than an estate or trust), an 

amount equal to 1 21 ⁄2 of the amount in effect 

22 for the taxable year under clause (i), and 

23 ‘‘(iv) in the case of an estate or trust, 

24 $2,600.’’. 


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1 (5) Section 1(j)(5)(C) of such Code is amended 

2 by striking ‘‘clauses (i) and (ii) of’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this subsection shall apply to taxable years beginning after 

5 December 31, 2019. 

6 (d) SECTION 15 NOT TO APPLY.—Section 15 of the 

7 Internal Revenue Code of 1986 shall not apply to any 

8 change in a rate of tax by reason of any amendment made 

9 by this section. 

Æ 


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