Supporting Americans with Lower Taxes Act or the SALT Act
This bill modifies the limitation on the tax deduction for certain state, local, and foreign real and personal property taxes. Specifically, the bill denies a tax deduction for foreign real property taxes to any individual taxpayer with an adjusted gross income that equals or exceeds $400,000. It also limits the deduction for the aggregate amount of other state and local taxes and sales taxes for such taxpayers to $60,000 in a taxable year.
The bill transfers revenues from this bill to a Medicare Vision and Hearing Trust Fund to provide vision and hearing benefits under the Medicare program.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6847 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 6847
To amend the Internal Revenue Code of 1986 to modify the limitation on
the deduction by individuals of certain State and local taxes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2022
Mr. Malinowski (for himself, Ms. Porter, Mr. Sherman, Ms. Eshoo, Mr.
Casten, Mr. Jones, and Mr. Lieu) introduced the following bill; which
was referred to the Committee on Ways and Means, and in addition to the
Committee on Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the limitation on
the deduction by individuals of certain State and local taxes.
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 ``Supporting Americans with Lower
Taxes Act'' or as the ``SALT Act''.
SEC. 2. MODIFICATION OF LIMITATION ON THE DEDUCTION BY INDIVIDUALS OF
CERTAIN STATE AND LOCAL, ETC., TAXES.
(a) In General.--Section 164(b)(6) is amended to read as follows:
``(6) Limitation on deduction by certain high-income
individuals.--
``(A) In general.--In the case of a taxpayer with
adjusted gross income which equals or exceeds $400,000
for any taxable year--
``(i) foreign real property taxes shall not
be taken into account under subsection (a)(1)
(or section 216(a)) for such taxable year, and
``(ii) the aggregate amount of taxes taken
into account under paragraphs (1), (2), and (3)
of subsection (a) and paragraph (5) of this
subsection (and any tax described in any such
paragraph taken into account under section
216(a)(1)) for such taxable year shall not
exceed $60,000.
``(B) Phasedown of limitation based on adjusted
gross income.--The $60,000 amount in subparagraph
(A)(ii) shall be reduced (but not below zero) by the
dollar amount which bears the same ratio to $60,000
as--
``(i) the excess of the taxpayer's adjusted
gross income over $400,000, bears to
``(ii) $600,000.
``(C) Application restricted to certain taxpayers
and taxes.--
``(i) Application to individuals.--
Subparagraph (A) shall only apply to
individuals, estates, and trusts.
``(ii) Exclusion of certain business
taxes.--Subparagraph (A) shall not apply to any
foreign taxes described in subsection (a)(3) or
to any taxes described in paragraph (1) and (2)
of subsection (a) which are paid or accrued in
carrying on a trade or business or an activity
described in section 212.
``(D) Married individuals filing a separate
return.--In the case of a married individual filing a
separate return, subparagraphs (A) and (B) shall be
applied--
``(i) by substituting `$200,000' for
`$400,000' each place it appears,
``(ii) by substituting `$30,000' for
`$60,000' each place it appears, and
``(iii) by substituting `$300,000' for
`$600,000' in subparagraph (B)(ii).
``(E) Estates and trusts.--In the case of an estate
or trust, adjusted gross income shall be determined as
provided in section 67(e).
``(F) Denial of deduction to billionaires.--Unless
the taxpayer has less than $1,000,000,000 ($500,000,000
in the case of a married individual filing a separate
return) in assets as of the close of the taxable year
(and attests to such fact under penalty of perjury at
such time and in such manner as the Secretary may
provide)--
``(i) subparagraph (A) shall be applied--
``(I) by substituting `zero' for
`$400,000', and
``(II) by substituting `zero' for
`$60,000', and
``(ii) subparagraphs (B) and (D) shall not
apply.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 3. MEDICARE VISION AND HEARING TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9512. MEDICARE VISION AND HEARING TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Medicare Vision
and Hearing Trust Fund', consisting of such amounts as may be
appropriated or credited to such fund as provided in this section or
section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Medicare Vision and Hearing Trust Fund amounts equivalent to the
amounts received in the Treasury by reason of the amendment made by
section 2 of the SALT Act.
``(c) Expenditures.--Amounts in the Medicare Vision and Hearing
Trust Fund shall be available, as provided in appropriation Acts, only
for the purpose of providing vision and hearing benefits pursuant to
the Medicare program established under title XVIII of the Social
Security Act.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of such Code is amended by adding at the end the following
new item:
``Sec. 9512. Medicare Vision and Hearing Trust Fund.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.
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