I 

117TH CONGRESS 

2D SESSION H. R. 6847 

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

on the deduction by individuals of certain State and local taxes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 25, 2022 

Mr. MALINOWSKI (for himself, Ms. PORTER, Mr. SHERMAN, Ms. ESHOO, Mr. 

CASTEN, Mr. JONES, and Mr. LIEU) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committee on Energy and Commerce, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the limitation on the deduction by individuals of certain 

State and local taxes. 

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 ‘‘Supporting Americans 

5 with Lower Taxes Act’’ or as the ‘‘SALT Act’’. 


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1 SEC. 2. MODIFICATION OF LIMITATION ON THE DEDUC2 TION BY INDIVIDUALS OF CERTAIN STATE 

3 AND LOCAL, ETC., TAXES. 

4 (a) IN GENERAL.—Section 164(b)(6) is amended to 

5 read as follows: 

6 ‘‘(6) LIMITATION ON DEDUCTION BY CERTAIN

7 HIGH-INCOME INDIVIDUALS.— 

8 ‘‘(A) IN GENERAL.—In the case of a tax9 payer with adjusted gross income which equals 

10 or exceeds $400,000 for any taxable year— 

11 ‘‘(i) foreign real property taxes shall 

12 not be taken into account under subsection 

13 (a)(1) (or section 216(a)) for such taxable 

14 year, and 

15 ‘‘(ii) the aggregate amount of taxes 

16 taken into account under paragraphs (1), 

17 (2), and (3) of subsection (a) and para18 graph (5) of this subsection (and any tax 

19 described in any such paragraph taken into 

20 account under section 216(a)(1)) for such 

21 taxable year shall not exceed $60,000. 

22 ‘‘(B) PHASEDOWN OF LIMITATION BASED

23 ON ADJUSTED GROSS INCOME.—The $60,000 

24 amount in subparagraph (A)(ii) shall be re25 duced (but not below zero) by the dollar 


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1 amount which bears the same ratio to $60,000 

2 as— 

3 ‘‘(i) the excess of the taxpayer’s ad4 justed gross income over $400,000, bears 

5 to 

6 ‘‘(ii) $600,000. 

7 ‘‘(C) APPLICATION RESTRICTED TO CER8 TAIN TAXPAYERS AND TAXES.— 

9 ‘‘(i) APPLICATION TO INDIVIDUALS.— 

10 Subparagraph (A) shall only apply to indi11 viduals, estates, and trusts. 

12 ‘‘(ii) EXCLUSION OF CERTAIN BUSI13 NESS TAXES.—Subparagraph (A) shall not 

14 apply to any foreign taxes described in 

15 subsection (a)(3) or to any taxes described 

16 in paragraph (1) and (2) of subsection (a) 

17 which are paid or accrued in carrying on 

18 a trade or business or an activity described 

19 in section 212. 

20 ‘‘(D) MARRIED INDIVIDUALS FILING A

21 SEPARATE RETURN.—In the case of a married 

22 individual filing a separate return, subpara23 graphs (A) and (B) shall be applied— 

24 ‘‘(i) by substituting ‘$200,000’ for 

25 ‘$400,000’ each place it appears, 


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1 ‘‘(ii) by substituting ‘$30,000’ for 

2 ‘$60,000’ each place it appears, and 

3 ‘‘(iii) by substituting ‘$300,000’ for 

4 ‘$600,000’ in subparagraph (B)(ii). 

5 ‘‘(E) ESTATES AND TRUSTS.—In the case 

6 of an estate or trust, adjusted gross income 

7 shall be determined as provided in section 

8 67(e). 

9 ‘‘(F) DENIAL OF DEDUCTION TO BILLION10 AIRES.—Unless the taxpayer has less than 

11 $1,000,000,000 ($500,000,000 in the case of a 

12 married individual filing a separate return) in 

13 assets as of the close of the taxable year (and 

14 attests to such fact under penalty of perjury at 

15 such time and in such manner as the Secretary 

16 may provide)— 

17 ‘‘(i) subparagraph (A) shall be ap18 plied— 

19 ‘‘(I) by substituting ‘zero’ for 

20 ‘$400,000’, and 

21 ‘‘(II) by substituting ‘zero’ for 

22 ‘$60,000’, and 

23 ‘‘(ii) subparagraphs (B) and (D) shall 

24 not apply.’’. 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 3. MEDICARE VISION AND HEARING TRUST FUND. 

5 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

6 Internal Revenue Code of 1986 is amended by adding at 

7 the end the following new section: 

8 ‘‘SEC. 9512. MEDICARE VISION AND HEARING TRUST FUND. 

9 ‘‘(a) CREATION OF TRUST FUND.—There is estab10 lished in the Treasury of the United States a trust fund 

11 to be known as the ‘Medicare Vision and Hearing Trust 

12 Fund’, consisting of such amounts as may be appropriated 

13 or credited to such fund as provided in this section or sec14 tion 9602(b). 

15 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here16 by appropriated to the Medicare Vision and Hearing Trust 

17 Fund amounts equivalent to the amounts received in the 

18 Treasury by reason of the amendment made by section 

19 2 of the SALT Act. 

20 ‘‘(c) EXPENDITURES.—Amounts in the Medicare Vi21 sion and Hearing Trust Fund shall be available, as pro22 vided in appropriation Acts, only for the purpose of pro23 viding vision and hearing benefits pursuant to the Medi24 care program established under title XVIII of the Social 

25 Security Act.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for subchapter A of chapter 98 of such Code is amended 

3 by adding at the end the following new item: 

‘‘Sec. 9512. Medicare Vision and Hearing Trust Fund.’’. 

Æ 


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