[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 437 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 437
To amend the Internal Revenue Code of 1986 to repeal the dollar
limitation on the deduction for State and local taxes and restore the
39.6 percent individual income tax rate bracket.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 11, 2019
Mr. Menendez (for himself, Mr. Schumer, Mr. Wyden, Mr. Durbin, Mrs.
Murray, Mr. Booker, Mr. Cardin, Ms. Harris, Mr. Van Hollen, Mrs.
Feinstein, Mrs. Gillibrand, Ms. Duckworth, Mr. Blumenthal, and Mr.
Murphy) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the dollar
limitation on the deduction for State and local taxes and restore the
39.6 percent individual income tax rate bracket.
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 ``Stop the Attack on Local Taxpayers
Act'' or the ``SALT Act''.
SEC. 2. REPEAL OF DOLLAR LIMITATION ON DEDUCTION FOR STATE AND LOCAL
TAXES.
(a) In General.--Section 164(b)(6) of the Internal Revenue Code of
1986 is amended by striking all that follows ``January 1, 2026'' and
inserting ``, foreign real property taxes (other than such taxes paid
or accrued in carrying on a trade or business or an activity described
in section 212) shall not be taken into account under subsection
(a)(1).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2018.
SEC. 3. RESTORATION OF 39.6 PERCENT RATE BRACKET FOR INDIVIDUALS.
(a) In General.--
(1) Married filing jointly and surviving spouses.--The
table contained in section 1(j)(2)(A) of the Internal Revenue
Code of 1986 is amended by striking ``Over $400,000'' and all
that follows and inserting the following:
``Over $400,000 but not over
$470,700.
$91,379, plus 35% of the excess
over $400,000.
Over $470,700..................
$116,124, plus 39.6% of the
excess over
$470,700.''.
(2) Heads of households.--The table contained in section
1(j)(2)(B) of such Code is amended by striking ``Over
$200,000'' and all that follows and inserting the following:
``Over $200,000 but not over
$418,400.
$44,298, plus 35% of the excess
over $200,000.
Over $418,400..................
$120,738, plus 39.6% of the
excess over
$418,400.''.
(3) Unmarried individuals.--The table contained in section
1(j)(2)(C) of such Code is amended by striking ``Over
$200,000'' and all that follows and inserting the following:
``Over $200,000 but not over
$418,400.
$45,689.50, plus 35% of the
excess over $200,000.
Over $418,400..................
$122,129.50, plus 39.6% of the
excess over
$418,400.''.
(4) Married filing separately.--The table contained in
section 1(j)(2)(D) of such Code is amended by striking ``Over
$200,000'' and all that follows and inserting the following:
``Over $200,000 but not over
$235,350.
$45,689.50, plus 35% of the
excess over $200,000.
Over $235,350..................
$58,062.50, plus 39.6% of the
excess over
$235,350.''.
(b) Inflation Adjustments to 39.6 Percent Rate.--
(1) In general.--Section 1(j)(3)(A) of the Internal Revenue
Code of 1986 is amended by inserting ``(before January 1, 2020,
in the case of so much of such tables as relates to amounts to
which the 39.6 percent rate applies)'' after ``January 1,
2019''.
(2) Adjustment rules.--Section 1(j)(3)(B) of such Code is
amended--
(A) in the matter preceding clause (i), by
inserting ``(December 31, 2019, in the case of so much
of such tables as relates to amounts to which the 39.6
percent rate applies)'' after ``December 31, 2018'',
(B) in clause (i), by inserting ``except as
provided in clause (iv),'' before ``subsection (f)(3)
shall'', and
(C) by striking ``and'' at the end of clause (ii),
by striking the period at the end of clause (iii) and
inserting ``, and'', and by adding at the end the
following new clause:
``(iv) in the case of so much of such
tables as relates to amounts to which the 39.6
percent rate applies, subsection (f)(3) shall
be applied by substituting `calendar year 2018'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
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