I 

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. SA ́NCHEZ) 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. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Stop the Attack on 

3 Local Taxpayers Act of 2019’’ or the ‘‘SALT Act’’. 

4 SEC. 2. REPEAL OF DOLLAR LIMITATION ON DEDUCTION 

5 FOR STATE AND LOCAL TAXES. 

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

7 Revenue Code of 1986 is amended by striking all that fol8 lows ‘‘January 1, 2026’’ and inserting ‘‘, foreign real prop9 erty taxes (other than such taxes paid or accrued in car10 rying on a trade or business or an activity described in 

11 section 212) shall not be taken into account under sub12 section (a)(1).’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2018. 

16 SEC. 3. RESTORATION OF 39.6 PERCENT RATE BRACKET 

17 FOR INDIVIDUALS. 

18 (a) IN GENERAL.— 

19 (1) MARRIED FILING JOINTLY AND SURVIVING

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

21 of the Internal Revenue Code of 1986 is amended by 

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

23 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.’’. 


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1 (2) HEADS OF HOUSEHOLD.—The table con2 tained in section 1(j)(2)(B) of such Code is amended 

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

4 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.’’. 

5 (3) UNMARRIED INDIVIDUALS.—The table con6 tained in section 1(j)(2)(C) of such Code is amended 

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

8 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.’’. 

9 (4) MARRIED FILING SEPARATELY.—The table 

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

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

12 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.’’. 

13 (b) INFLATION ADJUSTMENTS TO 39.6 PERCENT

14 RATE.— 

15 (1) IN GENERAL.—Section 1(j)(3)(A) of such 

16 Code is amended by inserting ‘‘(January 1, 2020, in 

17 the case of so much of the tables as relates to 


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1 amounts to which the 39.6 percent rate applies)’’ 

2 after ‘‘January 1, 2019’’. 

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

4 of such Code is amended— 

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

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

7 so much of the tables as relates to amounts to 

8 which the 39.6 percent rate applies)’’ after 

9 ‘‘December 31, 2018’’, 

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

11 provided in clause (iv)’’ before ‘‘subsection 

12 (f)(3) shall’’, and 

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

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

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

16 end the following new clause: 

17 ‘‘(iv) in the case of so much of the ta18 bles as relates to amounts to which the 

19 39.6 percent rate applies, subsection (f)(3) 

20 shall be applied by substituting ‘calendar 

21 year 2018’ for ‘calendar year 2016’ in sub22 paragraph (A)(ii) thereof.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2018. 

Æ 


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