House Votes for Schneider-Led Legislation to Repeal State and Local Tax (SALT) Deduction Cap

Today, the House of Representatives passed H.R. 5377, "Restoring Tax Fairness for States and Localities Act," which would provide relief to many Tenth District communities facing increased taxes as a result of the 2017 Republican tax law. Congressman Brad Schneider (D-IL) helped introduce the legislation as an original co-sponsor and has been a staunch advocate for repealing the State and Local Tax (SALT) deduction cap.

The 2017 tax law capped the SALT deduction at $10,000 (including for married couples) which raised taxes on many Illinois families. H.R. 5377 would eliminate the "marriage penalty" for 2019 by doubling the deduction to $20,000 for married filers, and it would eliminate the cap entirely in 2020 and 2021.

Passing legislation to eliminate the SALT cap has been a top priority for Schneider. He was an original co-sponsor helping to introduce the legislation at the Ways and Means Committee, participated in the Committee mark-up, and also testified for nearly an hour representing the bill on Monday as the House Rules Committee debated the legislation (video).

During the floor debate on the legislation, Schneider spoke in support:

VIDEO: Schneider speaks on House floor in support of eliminating SALT deduction

Schneider's remarks on the House floor:

I rise today in strong support of H.R. 5377, the Restoring Tax Fairness for States and Localities Act.

This legislation that seeks to fix one of the most harmful provisions of the 2017 Republican tax law – the $10,000 limit on the State and Local Tax Deduction. Raising this unfair, punishing cap is a top priority for the constituents I represent.

Forcing Americans to pay federal tax on taxes they already paid to state and local governments is double taxation and it's wrong.

In my Illinois district, approximately 42 percent of filers use the SALT deduction, and the average deduction is significantly higher – nearly double - the new cap.

Even worse – the new $10,000 cap applies equally to married and single filers. This creates a "marriage penalty" and further punishes joint filers.

This is not fair to America's middle class. It's wrong that the burden of a tax law that overwhelmingly benefits the most fortunate Americans – 83 percent of the benefit to the top one percent by one estimate – should lie with a narrow range of states like Illinois.

H.R. 5377 would rectify these wrongs. I urge my colleagues to vote yes.

VIDEO: Schneider speaks on House floor in support of eliminating SALT deduction