Rep. Pascrell’s SALT Cap Relief Gains Committee Approval

The House Ways & Means Committee, which has jurisdiction over all tax legislation, has approved bi-partisan legislation to repeal the $10,000 cap on the deduction of state and local taxes (SALT) enacted as part of the Tax Cut and Jobs Act of 2017. The bipartisan measure was introduced by Rep. Bill Pascrell, Jr. (D-9) and fellow House Ways & Means Committee member Rep. Tom Suozzi (D-NY) and is based on Pascrell’s bipartisan SALT Act (H.R. 1142).

The next step for the measure will be consideration by the full House.

The legislation (H.R. 5377) would:

  • Eliminate the cap’s marriage penalty for 2019, enabling married taxpayers filing jointly to claim up to $20,000;
  • Repeal the cap entirely for 2020 and 2021; and
  • Pay for the tax relief by restoring the top income tax rate of 39.6 percent that was in effect prior to the 2017 changes in the tax code.

There are currently 45 cosponsors including Reps. Andy Kim (D-3), Tom Malinowski (D-7), Mikie Sherrill (D-11), Albio Sires (D-8) and Bonnie Watson Coleman (D-12). 

Sen. Robert Menendez (D-NJ) introduced a similar measure in the Senate (S. 437) which has 14 cosponsors including Sen. Cory Booker (D-NJ).