[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5377 Reported in House (RH)]
<DOC>
Union Calendar No. 275
116th CONGRESS
1st Session
H. R. 5377
[Report No. 116-345]
To amend the Internal Revenue Code of 1986 to modify the limitation on
deduction of State and local taxes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2019
Mr. Suozzi (for himself, Mr. Thompson of California, Mr. Pascrell, Mr.
King of New York, Mr. Beyer, Mr. Brendan F. Boyle of Pennsylvania, Ms.
Judy Chu of California, Mr. Danny K. Davis of Illinois, Mr. Higgins of
New York, Mr. Larson of Connecticut, Mr. Panetta, Ms. Sanchez, Mr.
Schneider, Mr. Casten of Illinois, Mr. Cisneros, Mr. Correa, Ms. Craig,
Mr. Engel, Ms. Eshoo, Mr. Kim, Mr. Levin of California, Mrs. Lowey, Mr.
Malinowski, Mr. Meeks, Ms. Meng, Mr. Morelle, Mr. Nadler, Mr. Phillips,
Ms. Porter, Mr. Raskin, Miss Rice of New York, Mr. Rose of New York,
Ms. Sherrill, Mr. Sires, Mr. Trone, Ms. Underwood, Mrs. Watson Coleman,
Mr. Courtney, Mr. Espaillat, and Mr. Harder of California) introduced
the following bill; which was referred to the Committee on Ways and
Means
December 13, 2019
Additional sponsors: Mr. Sean Patrick Maloney of New York, Mr.
Krishnamoorthi, Mr. Huffman, Mr. Gonzalez of Texas, Mr. Gomez, Ms.
Wexton, Ms. Norton, Ms. DeLauro, Mr. Ted Lieu of California, Mr. Brown
of Maryland, Mr. Pallone, Mrs. Davis of California, and Ms. Speier
December 13, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
December 10, 2019]
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the limitation on
deduction of 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 ``Restoring Tax Fairness for States
and Localities Act''.
SEC. 2. ELIMINATION FOR 2019 OF MARRIAGE PENALTY IN LIMITATION ON
DEDUCTION OF STATE AND LOCAL TAXES.
(a) In General.--Section 164(b) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(7) Special rule for limitation on individual deductions
for 2019.--In the case of a taxable year beginning after
December 31, 2018, and before January 1, 2020, paragraph (6)
shall be applied by substituting `($20,000 in the case of a
joint return)' for `($5,000 in the case of a married individual
filing a separate return)'.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2018.
SEC. 3. ELIMINATION FOR 2020 AND 2021 OF LIMITATION ON DEDUCTION OF
STATE AND LOCAL TAXES.
(a) In General.--Section 164(b)(6)(B) of the Internal Revenue Code
of 1986 is amended by inserting ``in the case of a taxable year
beginning before January 1, 2020, or after December 31, 2021,'' before
``the aggregate amount of taxes''.
(b) Conforming Amendments.--Section 164(b)(6) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``For purposes of subparagraph (B)'' and
inserting ``For purposes of this section'',
(2) by striking ``January 1, 2018'' and inserting ``January
1, 2022'',
(3) by striking ``December 31, 2017, shall'' and inserting
``December 31, 2021, shall'', and
(4) by adding at the end the following: ``For purposes of
this section, in the case of State or local taxes with respect
to any real or personal property paid during a taxable year
beginning in 2020 or 2021, the Secretary shall prescribe rules
which treat all or a portion of such taxes as paid in a taxable
year or years other than the taxable year in which actually
paid as necessary or appropriate to prevent the avoidance of
the limitations of this subsection.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning after
December 31, 2019.
SEC. 4. INCREASE IN DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) Increase.--Section 62(a)(2)(D) of the Internal Revenue Code of
1986 is amended by striking ``$250'' and inserting ``$500''.
(b) Conforming Amendments.--Section 62(d)(3) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``2015'' and inserting ``2019'',
(2) by striking ``$250'' and inserting ``$500'', and
(3) in subparagraph (B), by striking ``2014'' and inserting
``2018''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
SEC. 5. ABOVE-THE-LINE DEDUCTION ALLOWED FOR CERTAIN EXPENSES OF FIRST
RESPONDERS.
(a) In General.--Section 62(a)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(F) Certain expenses of first responders.--The
deductions allowed by section 162 which consist of
expenses, not in excess of $500, paid or incurred by a
first responder--
``(i) as tuition or fees for the
participation of the first responder in
professional development courses related to
service as a first responder, or
``(ii) for uniforms used by the first
responder in service as a first responder.''.
(b) First Responder Defined.--Section 62(d) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
``(4) First responder.--For purposes of subsection
(a)(2)(F), the term `first responder' means, with respect to
any taxable year, any individual who is employed as a law
enforcement officer, firefighter, paramedic, or emergency
medical technician for at least 1000 hours during such taxable
year.''.
(c) Inflation Adjustment.--Section 62(d)(3) of the Internal Revenue
Code of 1986, as amended by section 4, is further amended by striking
``the $500 amount in subsection (a)(2)(D)'' and inserting ``the $500
amount in each of subparagraphs (D) and (F) of subsection (a)(2)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
SEC. 6. INCREASE OF TOP MARGINAL INDIVIDUAL INCOME TAX RATE UNDER
TEMPORARY RULES.
(a) In General.--The tables contained in subparagraphs (A), (B),
(C), (D), and (E) of section 1(j)(2) of the Internal Revenue Code of
1986 are each amended by striking ``37%'' and inserting ``39.6%'' and--
(1) in subparagraph (A)--
(A) by striking ``$600,000'' each place such term
appears and inserting ``$479,000'', and
(B) by striking ``$161,379'' and inserting
``$119,029'',
(2) in subparagraph (B)--
(A) by striking ``$500,000'' each place such term
appears and inserting ``$452,400'', and
(B) by striking ``$149,298'' and inserting
``$132,638'',
(3) in subparagraph (C)--
(A) by striking ``$500,000'' each place such term
appears and inserting ``$425,800'', and
(B) by striking ``$150,689.50'' and inserting
``$124,719.50'', and
(4) in subparagraph (D)--
(A) by striking ``$300,000'' each place such term
appears and inserting ``$239,500'', and
(B) by striking ``$80,689.50'' and inserting
``$59,514.50''.
(b) Conforming Amendments.--
(1) Section 1(j)(4)(B)(iii) of the Internal Revenue Code of
1986 is amended--
(A) in the matter preceding subclause (I), by
striking ``37 percent'' and inserting ``39.6 percent'',
(B) in subclause (II), by striking ``37-percent
bracket'' and inserting ``39.6-percent bracket'', and
(C) in the heading, by striking ``37-percent
bracket'' and inserting ``39.6-percent bracket''.
(2) Section 1(j)(4)(C) of such Code is amended--
(A) in clause (i)(II), by striking ``paragraph
(5)(B)(i)(IV)'' and inserting ``paragraph (5)(B)(iv)'',
and
(B) by amending clause (ii) to read as follows:
``(ii) the amount which would (without
regard to this paragraph) be taxed at a rate
below 39.6 percent shall not be more than the
sum of--
``(I) the earned taxable income of
such child, plus
``(II) the maximum dollar amount
for the 35-percent rate bracket for
estates and trusts.''.
(3) The heading of section 1(j)(5) of such Code is amended
to read as follows: ``Application of zero percent capital gain
rate brackets''.
(4) Subparagraphs (A) and (B) of section 1(j)(5) of such
Code are amended to read as follows:
``(A) In general.--Subsection (h)(1)(B)(i) shall be
applied by substituting `below the maximum zero rate
amount' for `which would (without regard to this
paragraph) be taxed at a rate below 25 percent'.
``(B) Maximum zero rate amount defined.--For
purposes of subparagraph (A), the term `maximum zero
rate amount' means--
``(i) in the case of a joint return or
surviving spouse, $77,200,
``(ii) in the case of an individual who is
a head of household (as defined in section
2(b)), $51,700,
``(iii) in the case of any other individual
(other than an estate or trust), an amount
equal to \1/2\ of the amount in effect for the
taxable year under clause (i), and
``(iv) in the case of an estate or trust,
$2,600.''.
(5) Section 1(j)(5)(C) of such Code is amended by striking
``clauses (i) and (ii) of''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
(d) Section 15 Not to Apply.--Section 15 of the Internal Revenue
Code of 1986 shall not apply to any change in a rate of tax by reason
of any amendment made by this section.
Union Calendar No. 275
116th CONGRESS
1st Session
H. R. 5377
[Report No. 116-345]
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the limitation on
deduction of State and local taxes, and for other purposes.
_______________________________________________________________________
December 13, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed