II 

116TH CONGRESS 

1ST SESSION S. 437 

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 SENATE OF THE UNITED STATES 

FEBRUARY 11, 2019 

Mr. MENENDEZ (for himself, Mr. SCHUMER, Mr. WYDEN, Mr. DURBIN, Mrs. 

MURRAY, Mr. BOOKER, Mr. CARDIN, Ms. HARRIS, Mr. VAN HOLLEN, 

Mrs. FEINSTEIN, Mrs. GILLIBRAND, Ms. DUCKWORTH, Mr. 

BLUMENTHAL, and Mr. MURPHY) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

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. 

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 ‘‘Stop the Attack on 

5 Local Taxpayers Act’’ or the ‘‘SALT Act’’. 


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•S 437 IS

1 SEC. 2. REPEAL OF DOLLAR LIMITATION ON DEDUCTION 

2 FOR STATE AND LOCAL TAXES. 

3 (a) IN GENERAL.—Section 164(b)(6) of the Internal 

4 Revenue Code of 1986 is amended by striking all that fol5 lows ‘‘January 1, 2026’’ and inserting ‘‘, foreign real prop6 erty taxes (other than such taxes paid or accrued in car7 rying on a trade or business or an activity described in 

8 section 212) shall not be taken into account under sub9 section (a)(1).’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2018. 

13 SEC. 3. RESTORATION OF 39.6 PERCENT RATE BRACKET 

14 FOR INDIVIDUALS. 

15 (a) IN GENERAL.— 

16 (1) MARRIED FILING JOINTLY AND SURVIVING

17 SPOUSES.—The table contained in section 1(j)(2)(A) 

18 of the Internal Revenue Code of 1986 is amended by 

19 striking ‘‘Over $400,000’’ and all that follows and 

20 inserting the following: 

‘‘Over $400,000 but not over 

$470,700.

$91,379, plus 35% of the excess over 

$400,000. 

Over $470,700 ............................... $116,124, plus 39.6% of the excess 

over $470,700.’’. 

21 (2) HEADS OF HOUSEHOLDS.—The table con22 tained in section 1(j)(2)(B) of such Code is amended 


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•S 437 IS

1 by striking ‘‘Over $200,000’’ and all that follows 

2 and inserting the following: 

‘‘Over $200,000 but not over 

$418,400.

$44,298, plus 35% of the excess over 

$200,000. 

Over $418,400 ............................... $120,738, plus 39.6% of the excess 

over $418,400.’’. 

3 (3) UNMARRIED INDIVIDUALS.—The table con4 tained in section 1(j)(2)(C) of such Code is amended 

5 by striking ‘‘Over $200,000’’ and all that follows 

6 and inserting the following: 

‘‘Over $200,000 but not over 

$418,400.

$45,689.50, plus 35% of the excess 

over $200,000. 

Over $418,400 ............................... $122,129.50, plus 39.6% of the excess over $418,400.’’. 

7 (4) MARRIED FILING SEPARATELY.—The table 

8 contained in section 1(j)(2)(D) of such Code is 

9 amended by striking ‘‘Over $200,000’’ and all that 

10 follows and inserting the following: 

‘‘Over $200,000 but not over 

$235,350.

$45,689.50, plus 35% of the excess 

over $200,000. 

Over $235,350 ............................... $58,062.50, plus 39.6% of the excess 

over $235,350.’’. 

11 (b) INFLATION ADJUSTMENTS TO 39.6 PERCENT

12 RATE.— 

13 (1) IN GENERAL.—Section 1(j)(3)(A) of the In14 ternal Revenue Code of 1986 is amended by insert15 ing ‘‘(before January 1, 2020, in the case of so 

16 much of such tables as relates to amounts to which 

17 the 39.6 percent rate applies)’’ after ‘‘January 1, 

18 2019’’. 


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•S 437 IS

1 (2) ADJUSTMENT RULES.—Section 1(j)(3)(B) 

2 of such Code is amended— 

3 (A) in the matter preceding clause (i), by 

4 inserting ‘‘(December 31, 2019, in the case of 

5 so much of such tables as relates to amounts to 

6 which the 39.6 percent rate applies)’’ after 

7 ‘‘December 31, 2018’’, 

8 (B) in clause (i), by inserting ‘‘except as 

9 provided in clause (iv),’’ before ‘‘subsection 

10 (f)(3) shall’’, and 

11 (C) by striking ‘‘and’’ at the end of clause 

12 (ii), by striking the period at the end of clause 

13 (iii) and inserting ‘‘, and’’, and by adding at the 

14 end the following new clause: 

15 ‘‘(iv) in the case of so much of such 

16 tables as relates to amounts to which the 

17 39.6 percent rate applies, subsection (f)(3) 

18 shall be applied by substituting ‘calendar 

19 year 2018’ for ‘calendar year 2016’ in sub20 paragraph (A)(ii) thereof.’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2018. 

Æ 


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