I 

116TH CONGRESS 

1ST SESSION H. R. 2894 

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

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

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2019 

Mr. LIPINSKI 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 increase 

the limitation on the deduction for 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 ‘‘Save the State and 

5 Local Tax Deduction for Middle Class Families Act of 

6 2019’’. 

7 SEC. 2. INCREASE IN LIMITATION ON DEDUCTION FOR 

8 STATE AND LOCAL TAXES. 

9 (a) IN GENERAL.—Section 164(b)(6)(B) of the Inter10 nal Revenue Code of 1986 is amended by striking 


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1 ‘‘$10,000 ($5,000 in the case of a married individual filing 

2 a separate return)’’ and inserting ‘‘$15,000 (twice such 

3 amount in the case of a joint return)’’. 

4 (b) INFLATION ADJUSTMENT.—Section 164(b)(6) of 

5 such Code is amended— 

6 (1) by striking ‘‘and’’ at the end of subpara7 graph (A), by striking the period at the end of sub8 paragraph (B) and inserting ‘‘, and’’, and by insert9 ing after subparagraph (B) the following new sub10 paragraph: 

11 ‘‘(C) in the case of a taxable year begin12 ning in a calendar year after 2019, the $15,000 

13 amount in subparagraph (B) shall be increased 

14 by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘calendar 

20 year 2018’ for ‘calendar year 2016’ in sub21 paragraph (A)(ii) thereof.’’, and 

22 (2) by adding at the end the following: ‘‘Any in23 crease determined under subparagraph (C) shall be 

24 rounded to the nearest multiple of $100.’’ 


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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. 

4 SEC. 3. INCREASE IN CORPORATE INCOME TAX RATE. 

5 (a) IN GENERAL.—Section 11(b) of the Internal Rev6 enue Code of 1986 is amended by striking ‘‘21 percent 

7 of taxable income.’’ and inserting ‘‘the applicable percent8 age of taxable income. For purposes of the preceding sen9 tence, the term ‘applicable percentage’ means such per10 centage as the Secretary determines (not later than 60 

11 days after the date of the enactment of this sentence) will 

12 result in an increase in revenues to the Treasury (relative 

13 to the revenues that the Secretary estimates would have 

14 been received in the Treasury if the applicable percentage 

15 were 21 percent) equal to the reduction in revenues to the 

16 Treasury which the Secretary estimates will occur by rea17 son of the amendment made by section 2 of the Save the 

18 State and Local Tax Deduction for Middle Class Families 

19 Act of 2019.’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2018. 

Æ 


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