[Congressional Record Volume 169, Number 49 (Thursday, March 16, 2023)]
[Senate]
[Page S827]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 830. 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. Madam President, as Tax Day approaches, Americans 
families have begun calculating their taxes and filling out returns. 
They face a Tax Code that is frustratingly complex and at times unfair. 
The bill that I am introducing today would remedy a major discrepancy. 
The SALT Deduction Fairness Act would ensure that limits on State and 
local tax deductions, also known as SALT deductions, do not unfairly 
penalize married filers.
  Currently, the amount of State and local taxes that both single and 
married filers may deduct from their annual income taxes is capped at 
$10,000. Married people who file their taxes separately are limited to 
$5,000 each. In other words, people would be better off not getting 
married at all when it comes to the SALT deduction. My legislation 
eliminates the marriage penalty by treating married couples fairly by 
doubling their deduction to $20,000 when they file jointly or $10,000 
each for married individuals who file separate returns.
  The SALT deduction has been in the Tax Code since 1913 when the 
income tax was established. It is intended to protect taxpayers from 
double taxation. When the Senate considered the Tax Cuts and Jobs Act, 
I worked to keep the SALT deduction in the Federal Tax Code because of 
the increased tax burden its elimination would have imposed on Mainers. 
They already pay taxes on their homes and seasonal properties, annual 
excise taxes on their vehicles, sales taxes, and State income taxes. 
The Senate adopted my amendment, preserving the deduction for State and 
local taxes up to $10,000.
  Maine has one of the Nation's highest State income tax rates, making 
this deduction especially important to families in my State. Last year, 
an analysis by WalletHub found that Maine had the third highest overall 
tax burden behind only New York and Hawaii. Yet, according to the U.S. 
Census Bureau, Maine's median household income ranks only 32nd in the 
Nation and is approximately $5,000 below the U.S. median household 
income. Many Mainers are also subject to high local property taxes. The 
SALT deduction helps to offset the burden these taxes place on Maine 
families, providing critical relief for those who itemize their 
deductions.
  More broadly, our Tax Code must be fair to the more than 60 million 
married couples living in our Nation. A couple should not face a tax 
penalty for being married. One way to do that is to not penalize the 
deductions they can take for State and local taxes. The SALT Deduction 
Fairness Act remedies this.
  I urge my colleagues to support this commonsense bill to fix this 
marriage penalty.
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