SALT Act

To amend the Internal Revenue Code of 1986 to modify the limitation on the deduction by individuals of certain State and local taxes. 1. Short title This Act may be cited as the Supporting Americans with Lower Taxes Act SALT Act 2. Modification of limitation on the deduction by individuals of certain State and local, etc., taxes (a) In general Section 164(b)(6) is amended to read as follows: (6) Limitation on deduction by certain high-income individuals (A) In general In the case of a taxpayer with adjusted gross income which equals or exceeds $400,000 for any taxable year— (i) foreign real property taxes shall not be taken into account under subsection (a)(1) (or section 216(a)) for such taxable year, and (ii) the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection (and any tax described in any such paragraph taken into account under section 216(a)(1)) for such taxable year shall not exceed $60,000. (B) Phasedown of limitation based on adjusted gross income The $60,000 amount in subparagraph (A)(ii) shall be reduced (but not below zero) by the dollar amount which bears the same ratio to $60,000 as— (i) the excess of the taxpayer’s adjusted gross income over $400,000, bears to (ii) $600,000. (C) Application restricted to certain taxpayers and taxes (i) Application to individuals Subparagraph (A) shall only apply to individuals, estates, and trusts. (ii) Exclusion of certain business taxes Subparagraph (A) shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212. (D) Married individuals filing a separate return In the case of a married individual filing a separate return, subparagraphs (A) and (B) shall be applied— (i) by substituting $200,000 $400,000 (ii) by substituting $30,000 $60,000 (iii) by substituting $300,000 $600,000 (E) Estates and trusts In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e). (F) Denial of deduction to billionaires Unless the taxpayer has less than $1,000,000,000 ($500,000,000 in the case of a married individual filing a separate return) in assets as of the close of the taxable year (and attests to such fact under penalty of perjury at such time and in such manner as the Secretary may provide)— (i) subparagraph (A) shall be applied— (I) by substituting zero $400,000 (II) by substituting zero $60,000 (ii) subparagraphs (B) and (D) shall not apply. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Medicare vision and hearing trust fund (a) In general Subchapter A of chapter 98 9512. Medicare Vision and Hearing Trust Fund (a) Creation of trust fund There is established in the Treasury of the United States a trust fund to be known as the Medicare Vision and Hearing Trust Fund (b) Transfers to trust fund There are hereby appropriated to the Medicare Vision and Hearing Trust Fund amounts equivalent to the amounts received in the Treasury by reason of the amendment made by section 2 of the SALT Act (c) Expenditures Amounts in the Medicare Vision and Hearing Trust Fund shall be available, as provided in appropriation Acts, only for the purpose of providing vision and hearing benefits pursuant to the Medicare program established under title XVIII of the Social Security Act. . (b) Clerical amendment The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: Sec. 9512. Medicare Vision and Hearing Trust Fund. .

Summary: Supporting Americans with Lower Taxes Act or the SALT Act This bill modifies the limitation on the tax deduction for certain state, local, and foreign real and personal property taxes. Specifically, the bill denies a tax deduction for foreign real property taxes to any individual taxpayer with an adjusted gross income that equals or exceeds $400,000. It also limits the deduction for the aggregate amount of other state and local taxes and sales taxes for such taxpayers to $60,000 in a taxable year. The bill transfers revenues from this bill to a Medicare Vision and Hearing Trust Fund to provide vision and hearing benefits under the Medicare program.