The House of Representatives passed the Restoring Tax Fairness for States and Localities Act which eliminates the marriage penalty and the $10,000 cap on the state and local tax (SALT) deduction implemented under the 2017 Republican Tax Bill, reported Roll Call.
The measure, dubbed the “Restoring Tax Fairness for States and Localities Act” or HR 5377, proposes increasing the so-called SALT cap to $20,000 for married taxpayers who are filing jointly in 2019.
It also calls for the elimination of the SALT cap in 2020 and 2021.
Proponents of the bill would make up the $184.5 billion drain in federal revenues over the coming decade by increasing the top marginal tax rate for individuals from 37 percent to 39.6 percent — the same level that existed before the GOP tax overhaul. That rate would be permanent, while the SALT cap would return in 2022 under the bill.
Legislators narrowly voted in favor and did so largely along party lines: 218 to 206. Five Republicans backed the bill, all hailing from northeastern states with higher tax burdens. Meanwhile, 16 Democrats voted ‘no.’
The bill has little chance of passing the Republican-controlled Senate, and President Trump has threatened to veto it.