Rep. Lauren Underwood (D-IL) joined a bipartisan group of lawmakers seeking to overturn Treasury Department regulations seeking to restrict state and local taxes (SALT) deductibility guidelines.
Last month, the Treasury Department issued final regulations barring municipalities across the country from establishing trusts accepting payments from taxpayers to satisfy state and local tax liabilities.
“Middle-class families in the 14th District of Illinois are being double-taxed due to changes in the state and local tax deduction from the Republican tax law, all so the one percent and big corporations can get a tax break they don’t need,” Underwood said. “I’m proud to work with my colleagues in the House and Senate to ensure middle-class families aren’t disincentivized from investing in their communities because they now owe a higher federal tax bill.”
Underwood recently introduced a bill to reverse a tax increase on middle-class families created by the introduction of a $10,000 cap SALT in the Tax Cuts and Jobs Act of 2017. The measure would help middle-class families increase the current cap on SALT deductions from $10,000 to $15,000 for individual filers, eliminate the law’s marriage penalty by allowing joint filers to deduct up to $30,000 and adjust the cap for inflation so the value of the deduction does not decrease over time.
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