Schneider Co-Sponsors Bipartisan Bill to Restore Full State and Local Tax Deduction
Today, Congressman Brad Schneider (D-IL-10), a member of the House Committee on Ways & Means, co-sponsored bipartisan legislation to restore the full deduction on State and Local taxes, commonly known as the SALT deduction. The 2017 tax reform law instituted a severe cap of $10,000 on use of the SALT deduction, effectively raising taxes on thousands of residents of Illinois’s Tenth Congressional District.
“Forcing constituents to pay federal tax on money they have already paid to state and local governments is double taxation and it is wrong,” said Schneider. “Lifting these punishing caps is a top priority for our district, and I am pleased that there is growing bipartisan support for the effort. Allowing taxpayers to again deduct their full state and local taxes will bring needed tax relief to the communities I represent.”
Schneider co-sponsored H.R. 188, the SALT Deductibility Act. This bipartisan legislation was introduced by Chairwoman Nita Lowey (D-NY-17) and Rep. Peter King (R-NY-02).
According to a recent study by the U.S. Department of Treasury, approximately 11 million filers this year will be affected by the new $10,000 cap on SALT deductions.
In addition, IRS data shows that in both Lake and Cook County, the SALT deduction was heavily utilized in 2016 and on average families claimed far above the new $10,000 limit.
- In Lake County, 42 percent of tax filers claimed the SALT deduction averaging $18,369 – the highest average deduction in any county in Illinois.
- In Cook County, 31 percent of tax filers claimed the SALT deduction averaging $12,949 – the third highest average deduction in any county in Illinois.