Save the State and Local Tax Deduction for Middle Class Families Act of 2019

Save the State and Local Tax Deduction for Middle Class Families Act of 2019

This bill increases the limit on the tax deduction for certain state and local taxes, which is currently $10,000 per year. The bill increases the limit to $15,000 (twice the amount in the case of a joint return) and requires the new limit to be adjusted for inflation after 2019.

The bill also increases the income tax rate for corporations to an amount that the Department of the Treasury determines is required to cover the reduction in revenue resulting from the increased tax deduction allowed by this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2894 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2894

 To amend the Internal Revenue Code of 1986 to increase the limitation 
  on the deduction for State and local taxes, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2019

 Mr. Lipinski introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the limitation 
  on the deduction for State and local taxes, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Save the State and Local Tax 
Deduction for Middle Class Families Act of 2019''.

SEC. 2. INCREASE IN LIMITATION ON DEDUCTION FOR STATE AND LOCAL TAXES.

    (a) In General.--Section 164(b)(6)(B) of the Internal Revenue Code 
of 1986 is amended by striking ``$10,000 ($5,000 in the case of a 
married individual filing a separate return)'' and inserting ``$15,000 
(twice such amount in the case of a joint return)''.
    (b) Inflation Adjustment.--Section 164(b)(6) of such Code is 
amended--
            (1) by striking ``and'' at the end of subparagraph (A), by 
        striking the period at the end of subparagraph (B) and 
        inserting ``, and'', and by inserting after subparagraph (B) 
        the following new subparagraph:
                    ``(C) in the case of a taxable year beginning in a 
                calendar year after 2019, the $15,000 amount in 
                subparagraph (B) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2018' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.'', and
            (2) by adding at the end the following: ``Any increase 
        determined under subparagraph (C) shall be rounded to the 
        nearest multiple of $100.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 3. INCREASE IN CORPORATE INCOME TAX RATE.

    (a) In General.--Section 11(b) of the Internal Revenue Code of 1986 
is amended by striking ``21 percent of taxable income.'' and inserting 
``the applicable percentage of taxable income. For purposes of the 
preceding sentence, the term `applicable percentage' means such 
percentage as the Secretary determines (not later than 60 days after 
the date of the enactment of this sentence) will result in an increase 
in revenues to the Treasury (relative to the revenues that the 
Secretary estimates would have been received in the Treasury if the 
applicable percentage were 21 percent) equal to the reduction in 
revenues to the Treasury which the Secretary estimates will occur by 
reason of the amendment made by section 2 of the Save the State and 
Local Tax Deduction for Middle Class Families Act of 2019.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2018.
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