SALT Act
Bill: H.R.6847 | Sponsor: Rep. Malinowski, Tom (D-NJ)
Policy area: Taxation

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.

To amend the Internal Revenue Code of 1986 to modify the limitation on 
     the deduction by individuals of certain State and local taxes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Supporting Americans with Lower 
Taxes Act'' or as the ``SALT Act''.

SEC. 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' for 
                        `$400,000' each place it appears,
                            ``(ii) by substituting `$30,000' for 
                        `$60,000' each place it appears, and
                            ``(iii) by substituting `$300,000' for 
                        `$600,000' in subparagraph (B)(ii).
                    ``(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' for 
                                `$400,000', and
                                    ``(II) by substituting `zero' for 
                                `$60,000', and
                            ``(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.

SEC. 3. MEDICARE VISION AND HEARING TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 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', consisting of such amounts as may be 
appropriated or credited to such fund as provided in this section or 
section 9602(b).
    ``(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.''.
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