SALT Fairness and Deficit Reduction Act

Bill: 118-hr-3098
Sponsor: full_name: Rep. LaLota, Nick [R-NY-1]
Introduced: 2023-05-05
Policy area: Taxation
Latest action: action_date: 2023-05-05
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-05-05
action_desc: Introduced in House
text: <p><strong>SALT Fairness and Deficit Reduction Act </strong> </p> <p>This bill increases the limitation on the tax deduction for state and local taxes to $60,000 (the limit is currently $10,000 for individual taxpayers). The bill also requires an annual inflation adjustment to the increased amount beginning after 2023, and extends through 2032 the period during which the limitation is in effect.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 3098 IN THE HOUSE OF REPRESENTATIVES May 5, 2023 Mr. LaLota introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the limitation on the deduction for State and local taxes.

1. Short title This Act may be cited as the SALT Fairness and Deficit Reduction Act . 2. Modification of limitation on deduction for State and local taxes (a) Increase in limitation (1) In general Section 164(b)(6)(B) of the Internal Revenue Code of 1986 is amended by striking $10,000 ($5,000 in the case of a married individual filing a separate return) and inserting $60,000 (twice such amount in the case of a joint return) . (2) Inflation adjustment Section 164 of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) Inflation adjustment (1) In general In the case of any taxable year beginning after 2023, the $60,000 amount in subsection (b)(6)(B) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section (1)(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins by substituting 2022 for 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any amount as adjusted under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. . (b) Extension of limitation Section 164(b)(6) of such Code is amended— (1) by striking January 1, 2026 and inserting January 1, 2033 , and (2) by striking 2025 in the heading and inserting 2032 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022.