IB 
Union Calendar No. 275 
116TH CONGRESS 
1ST SESSION H. R. 5377 
[Report No. 116–345] 
To amend the Internal Revenue Code of 1986 to modify the limitation 
on deduction of State and local taxes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 10, 2019 
Mr. SUOZZI (for himself, Mr. THOMPSON of California, Mr. PASCRELL, Mr. 
KING of New York, Mr. BEYER, Mr. BRENDAN F. BOYLE of Pennsyl-
vania, Ms. JUDY CHU of California, Mr. DANNY K. DAVIS of Illinois, Mr. 
HIGGINS of New York, Mr. LARSON of Connecticut, Mr. PANETTA, Ms. 
SA´NCHEZ, Mr. SCHNEIDER, Mr. CASTEN of Illinois, Mr. CISNEROS, Mr. 
CORREA, Ms. CRAIG, Mr. ENGEL, Ms. ESHOO, Mr. KIM, Mr. LEVIN of 
California, Mrs. LOWEY, Mr. MALINOWSKI, Mr. MEEKS, Ms. MENG, Mr. 
MORELLE, Mr. NADLER, Mr. PHILLIPS, Ms. PORTER, Mr. RASKIN, Miss 
RICE of New York, Mr. ROSE of New York, Ms. SHERRILL, Mr. SIRES, 
Mr. TRONE, Ms. UNDERWOOD, Mrs. WATSON COLEMAN, Mr. COURTNEY, 
Mr. ESPAILLAT, and Mr. HARDER of California) introduced the following 
bill; which was referred to the Committee on Ways and Means 
DECEMBER 13, 2019 
Additional sponsors: Mr. SEAN PATRICK MALONEY of New York, Mr. 
KRISHNAMOORTHI, Mr. HUFFMAN, Mr. GONZALEZ of Texas, Mr. GOMEZ, 
Ms. WEXTON, Ms. NORTON, Ms. DELAURO, Mr. TED LIEU of California, 
Mr. BROWN of Maryland, Mr. PALLONE, Mrs. DAVIS of California, and 
Ms. SPEIER 
DECEMBER 13, 2019 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on December 10, 2019] 
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A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the limitation on deduction of State and local taxes, 
and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Restoring Tax Fairness 
for States and Localities Act’’. 
SEC. 2. ELIMINATION FOR 2019 OF MARRIAGE PENALTY IN 
LIMITATION ON DEDUCTION OF STATE AND 
LOCAL TAXES. 
(a) IN GENERAL.—Section 164(b) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(7) SPECIAL RULE FOR LIMITATION ON INDI-
VIDUAL DEDUCTIONS FOR 2019.—In the case of a tax-
able year beginning after December 31, 2018, and be-
fore January 1, 2020, paragraph (6) shall be applied 
by substituting ‘($20,000 in the case of a joint re-
turn)’ for ‘($5,000 in the case of a married individual 
filing a separate return)’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 3. ELIMINATION FOR 2020 AND 2021 OF LIMITATION ON 
DEDUCTION OF STATE AND LOCAL TAXES. 
(a) IN GENERAL.—Section 164(b)(6)(B) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘in the 
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case of a taxable year beginning before January 1, 2020, 
or after December 31, 2021,’’ before ‘‘the aggregate amount 
of taxes’’. 
(b) CONFORMING AMENDMENTS.—Section 164(b)(6) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of subparagraph 
(B)’’ and inserting ‘‘For purposes of this section’’, 
(2) by striking ‘‘January 1, 2018’’ and inserting 
‘‘January 1, 2022’’, 
(3) by striking ‘‘December 31, 2017, shall’’ and 
inserting ‘‘December 31, 2021, shall’’, and 
(4) by adding at the end the following: ‘‘For pur-
poses of this section, in the case of State or local taxes 
with respect to any real or personal property paid 
during a taxable year beginning in 2020 or 2021, the 
Secretary shall prescribe rules which treat all or a 
portion of such taxes as paid in a taxable year or 
years other than the taxable year in which actually 
paid as necessary or appropriate to prevent the 
avoidance of the limitations of this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxes paid or accrued in taxable years 
beginning after December 31, 2019. 
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SEC. 4. INCREASE IN DEDUCTION FOR CERTAIN EXPENSES 
OF ELEMENTARY AND SECONDARY SCHOOL 
TEACHERS. 
(a) INCREASE.—Section 62(a)(2)(D) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘$250’’ and 
inserting ‘‘$500’’. 
(b) CONFORMING AMENDMENTS.—Section 62(d)(3) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘2015’’ and inserting ‘‘2019’’, 
(2) by striking ‘‘$250’’ and inserting ‘‘$500’’, 
and 
(3) in subparagraph (B), by striking ‘‘2014’’ and 
inserting ‘‘2018’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 5. ABOVE-THE-LINE DEDUCTION ALLOWED FOR CER-
TAIN EXPENSES OF FIRST RESPONDERS. 
(a) IN GENERAL.—Section 62(a)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(F) CERTAIN
EXPENSES
OF
FIRST
RE-
SPONDERS.—The deductions allowed by section 
162 which consist of expenses, not in excess of 
$500, paid or incurred by a first responder— 
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‘‘(i) as tuition or fees for the participa-
tion of the first responder in professional 
development courses related to service as a 
first responder, or 
‘‘(ii) for uniforms used by the first re-
sponder in service as a first responder.’’. 
(b) FIRST RESPONDER DEFINED.—Section 62(d) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(4) FIRST RESPONDER.—For purposes of sub-
section (a)(2)(F), the term ‘first responder’ means, 
with respect to any taxable year, any individual who 
is employed as a law enforcement officer, firefighter, 
paramedic, or emergency medical technician for at 
least 1000 hours during such taxable year.’’. 
(c) INFLATION ADJUSTMENT.—Section 62(d)(3) of the 
Internal Revenue Code of 1986, as amended by section 4, 
is further amended by striking ‘‘the $500 amount in sub-
section (a)(2)(D)’’ and inserting ‘‘the $500 amount in each 
of subparagraphs (D) and (F) of subsection (a)(2)’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
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SEC. 6. INCREASE OF TOP MARGINAL INDIVIDUAL INCOME 
TAX RATE UNDER TEMPORARY RULES. 
(a) IN GENERAL.—The tables contained in subpara-
graphs (A), (B), (C), (D), and (E) of section 1(j)(2) of the 
Internal Revenue Code of 1986 are each amended by strik-
ing ‘‘37%’’ and inserting ‘‘39.6%’’ and— 
(1) in subparagraph (A)— 
(A) by striking ‘‘$600,000’’ each place such 
term appears and inserting ‘‘$479,000’’, and 
(B) by striking ‘‘$161,379’’ and inserting 
‘‘$119,029’’, 
(2) in subparagraph (B)— 
(A) by striking ‘‘$500,000’’ each place such 
term appears and inserting ‘‘$452,400’’, and 
(B) by striking ‘‘$149,298’’ and inserting 
‘‘$132,638’’, 
(3) in subparagraph (C)— 
(A) by striking ‘‘$500,000’’ each place such 
term appears and inserting ‘‘$425,800’’, and 
(B) by striking ‘‘$150,689.50’’ and inserting 
‘‘$124,719.50’’, and 
(4) in subparagraph (D)— 
(A) by striking ‘‘$300,000’’ each place such 
term appears and inserting ‘‘$239,500’’, and 
(B) by striking ‘‘$80,689.50’’ and inserting 
‘‘$59,514.50’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Section 1(j)(4)(B)(iii) of the Internal Rev-
enue Code of 1986 is amended— 
(A) in the matter preceding subclause (I), 
by striking ‘‘37 percent’’ and inserting ‘‘39.6 
percent’’, 
(B) in subclause (II), by striking ‘‘37-per-
cent bracket’’ and inserting ‘‘39.6-percent brack-
et’’, and 
(C) in the heading, by striking ‘‘37-PER-
CENT
BRACKET’’ and inserting ‘‘39.6-PERCENT 
BRACKET’’. 
(2) Section 1(j)(4)(C) of such Code is amended— 
(A) in clause (i)(II), by striking ‘‘para-
graph (5)(B)(i)(IV)’’ and inserting ‘‘paragraph 
(5)(B)(iv)’’, and 
(B) by amending clause (ii) to read as fol-
lows: 
‘‘(ii) the amount which would (without 
regard to this paragraph) be taxed at a rate 
below 39.6 percent shall not be more than 
the sum of— 
‘‘(I) the earned taxable income of 
such child, plus 
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