SALT Act

Bill: 116-s-437
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2019-02-11
Policy area: Taxation
Subjects: Income tax deductions

Income tax rates

Inflation and prices

Property tax

Sales and excise taxes

State and local taxation
Latest action: action_date: 2019-02-11
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-02-11
action_desc: Introduced in Senate
text: <p><b>Stop the Attack on Local Taxpayers Act or the SALT Act</b></p> <p>This bill amends the Internal Revenue Code to (1) repeal the $10,000 limitation on individual income tax deductions for certain state and local taxes, and (2) increase the top individual income tax rate to 39.6% (currently 37%). </p>

tv_txt: II 116th CONGRESS 1st Session S. 437 IN THE SENATE OF THE UNITED STATES February 11, 2019 Mr. Menendez (for himself, Mr. Schumer , Mr. Wyden , Mr. Durbin , Mrs. Murray , Mr. Booker , Mr. Cardin , Ms. Harris , Mr. Van Hollen , Mrs. Feinstein , Mrs. Gillibrand , Ms. Duckworth , Mr. Blumenthal , and Mr. Murphy ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to repeal the dollar limitation on the deduction for State and local taxes and restore the 39.6 percent individual income tax rate bracket.

1. Short title This Act may be cited as the Stop the Attack on Local Taxpayers Act or the SALT Act . 2. Repeal of dollar limitation on deduction for State and local taxes (a) In general Section 164(b)(6) of the Internal Revenue Code of 1986 is amended by striking all that follows January 1, 2026 and inserting , foreign real property taxes (other than such taxes paid or accrued in carrying on a trade or business or an activity described in section 212) shall not be taken into account under subsection (a)(1). . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2018. 3. Restoration of 39.6 percent rate bracket for individuals (a) In general (1) Married filing jointly and surviving spouses The table contained in section 1(j)(2)(A) of the Internal Revenue Code of 1986 is amended by striking Over $400,000 and all that follows and inserting the following: Over $400,000 but not over $470,700 $91,379, plus 35% of the excess over $400,000. Over $470,700 $116,124, plus 39.6% of the excess over $470,700. . (2) Heads of households The table contained in section 1(j)(2)(B) of such Code is amended by striking Over $200,000 and all that follows and inserting the following: Over $200,000 but not over $418,400 $44,298, plus 35% of the excess over $200,000. Over $418,400 $120,738, plus 39.6% of the excess over $418,400. . (3) Unmarried individuals The table contained in section 1(j)(2)(C) of such Code is amended by striking Over $200,000 and all that follows and inserting the following: Over $200,000 but not over $418,400 $45,689.50, plus 35% of the excess over $200,000. Over $418,400 $122,129.50, plus 39.6% of the excess over $418,400. . (4) Married filing separately The table contained in section 1(j)(2)(D) of such Code is amended by striking Over $200,000 and all that follows and inserting the following: Over $200,000 but not over $235,350 $45,689.50, plus 35% of the excess over $200,000. Over $235,350 $58,062.50, plus 39.6% of the excess over $235,350. . (b) Inflation adjustments to 39.6 percent rate (1) In general Section 1(j)(3)(A) of the Internal Revenue Code of 1986 is amended by inserting (before January 1, 2020, in the case of so much of such tables as relates to amounts to which the 39.6 percent rate applies) after January 1, 2019 . (2) Adjustment rules Section 1(j)(3)(B) of such Code is amended— (A) in the matter preceding clause (i), by inserting (December 31, 2019, in the case of so much of such tables as relates to amounts to which the 39.6 percent rate applies) after December 31, 2018 , (B) in clause (i), by inserting except as provided in clause (iv), before subsection (f)(3) shall , and (C) by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and , and by adding at the end the following new clause: (iv) in the case of so much of such tables as relates to amounts to which the 39.6 percent rate applies, subsection (f)(3) shall be applied by substituting calendar year 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018.