By CARL GREEN
Washington – U.S. Senators Tammy Duckworth (D-IL) and Dick Durbin (D-IL) joined U.S. Senator Bob Menendez (D-NJ) introducing bipartisan legislation to fully restore the state and local tax (SALT) deduction. The Trump Tax Law of 2017 capped this deduction at $10,000, leading to millions of middle-class Americans being double-taxed.
With the beginning of tax-filing season underway, many taxpayers – especially in states like Illinois – are now realizing that they owe significantly more on their taxes as a result of the Republican Tax Law’s SALT cap.
‘A GIVEAWAY TO LARGE CORPORATIONS’
“The Republican tax law is a giveaway to large corporations, the wealthy and well-connected – and Illinois families are being forced to pick up the tab,” said Duckworth. “I am glad to join Senator Menendez and my colleagues in introducing legislation to stop many hardworking Illinoisans from being taxed twice on their hard-earned pay and I urge the Senate to pass this bill immediately.
‘AT THE EXPENSE OF WORKING FAMILIES’
“The Republican tax bill did everything it could to help the super wealthy and big corporations at the expense of working families. Illinoisans are now realizing that not only are they not receiving the $4,000 raise that was promised to them by the President and Republicans, but that they owe more on their taxes this year because of this law,” Durbin said.
“One of the provisions that helps Illinois families save money – the state and local tax (SALT) deduction – was capped by the Republican bill, subjecting families across the state to burdensome double-taxation and hurting local communities’ ability to raise revenue for essential public services. That has to change – and it’s why I’m joining my colleagues on a bill that would restore it.”
The SALT deduction allows taxpayers to write-off taxes paid at the state and local level from their federal income tax bill so they won’t be subject to being taxed twice on the same dollar.
In addition to helping families avoid double taxation, the SALT deduction supports the ability of communities, cities, and states to raise their own revenues and fund critical investments in public education, infrastructure, social services and public safety.
In 2017, about 30 percent of taxpayers claimed the deduction, and more than 80 percent of those filers earned under $200,000 – middle class in high cost-of-living states.
The bill to restore the SALT deduction is also cosponsored by Senators Cory Booker (D-NJ), Ben Cardin (D-MD), Kirsten Gillibrand (D-NY), Chuck Schumer (D-NY) and Chris Van Hollen (D-MD).
Companion legislation was also introduced by Congressman Bill Pascrell, Jr. (D-NJ) and has 19 co-sponsors.