[Congressional Record Volume 165, Number 173 (Thursday, October 31, 2019)]
[Senate]
[Pages S6336-S6337]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 2762. A bill to amend the Internal Revenue Code of 1986 to 
increase the limitation on the amount individuals filing jointly can 
deduct for certain State and local taxes; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise to introduce a bill to ensure that 
the treatment of the State and Local Property Tax deduction, also known 
as the ``SALT deduction,'' does not unfairly penalize married 
taxpayers. The SALT Deduction Fairness Act would eliminate the marriage 
penalty imposed by the current $10,000 cap on SALT by doubling this 
amount for married filers.
  The SALT deduction has been in the tax code since 1913 when the 
income tax was first established and is intended to prevent double 
taxation. The original Senate tax reform bill in 2017 would have 
eliminated the deduction altogether. During the consideration of the 
Tax Cuts and Jobs Act, I fought to keep the SALT deduction in the 
Federal tax code because of the incredible tax burden a complete 
elimination of this deduction would have imposed on American taxpayers, 
many of whom pay high taxes on everything from their incomes to their 
vehicles.
  My amendment, which was adopted by the Senate, retained the SALT 
deduction for up to $10,000 in State and local taxes such as State 
income taxes, local property taxes, and vehicle excise taxes. This was 
especially important to families living in high-tax states like Maine, 
which not only has one of our Nation's highest tax burdens, but also a 
relatively low per household income--approximately $6,300 below the U.S 
average. Maintaining the deduction provided important tax relief for 
those hard-working Mainers who continued to itemize.

[[Page S6337]]

  But a basic unfairness still exists in the tax code that penalizes 
married couples. Currently, individual taxpayers can deduct up to 
$10,000 in State and local taxes. If two people marry, however, the 
deduction remains at $10,000. As a result, a couple could be 
financially better off not getting married when it comes to the current 
SALT deduction.
  This legislation very simply would remove the marriage penalty by 
doubling the SALT deduction from $10,000 to $20,000 for joint filers. 
This straightforward change would remove a bias against marriage from 
the tax code. And, most important, it would help make the dream of home 
ownership a reality for married couples.
  The National Association of Realtors recently wrote to me about the 
importance of eliminating this marriage penalty, stating, 
``Homeownership has long been a vital part of the American Dream. 
Research shows that an overwhelming majority of current renters aspire 
to own a home, and we know that our Nation's faith in homeownership has 
persisted through the Great Recession. For well over a century, our tax 
system has helped American families in reaching this Dream.''
  Mr. President, we should not unfairly penalize American taxpayers for 
being married. This common sense legislation will fix this undue burden 
who are penalized for their filing status.
                                 ______