[Congressional Record Volume 166, Number 5 (Thursday, January 9, 2020)]
[Senate]
[Page S127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. SCHUMER (for himself, Mr. Wyden, and Mr. Menendez):
S. 3178. 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; to the Committee on Finance.
Mr. SCHUMER. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3178
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, if the
adjusted gross income of the taxpayer for such taxable year
does not exceed $100,000,000, 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) of the Internal Revenue
Code of 1986, as amended by section 2, is further amended by
adding at the end the following new paragraph:
``(8) Suspension of dollar limitation on state and local
taxes for 2020 and 2021.--
``(A) In general.--In the case of any taxable year
beginning in 2020 or 2021, subparagraph (B) of paragraph (6)
shall not apply.
``(B) Exception for certain high-income taxpayers.--
Subparagraph (A) shall not apply to any taxpayer for any
taxable year if the adjusted gross income of such taxpayer
for such taxable year exceeds $100,000,000.''.
(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
``$1,000''.
(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 ``$1,000''; 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 $1,000, 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 1,000 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 $1,000 amount in subsection
(a)(2)(D)'' and inserting ``the $1,000 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.
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