[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 946 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 946
To amend the Internal Revenue Code of 1986 to repeal the dollar
limitation on deduction of State and local taxes, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 8, 2021
Mr. Pascrell (for himself, Mrs. Watson Coleman, Mr. Pallone, Mr. Sires,
Mr. Payne, Mr. Norcross, Ms. Sherrill, Mr. Kim of New Jersey, Mr.
Courtney, and Mr. Panetta) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the dollar
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 ``Stop the Attack on Local Taxpayers
Act of 2021'' 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, 2017.
SEC. 3. 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, 2017.
SEC. 4. 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, 2017.
SEC. 5. 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, 2020.
(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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