Save the State and Local Tax Deduction for Middle Class Families Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 2894 To amend the Internal Revenue Code of 1986 to increase the limitation on the deduction for State and local taxes, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 22, 2019 Mr. LIPINSKI 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 increase the limitation on the deduction for State and local taxes, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Save the State and 4 Local Tax Deduction for Middle Class Families Act of 5 2019’’. 6 SEC. 2. INCREASE IN LIMITATION ON DEDUCTION FOR 7 STATE AND LOCAL TAXES. 8 (a) IN GENERAL.—Section 164(b)(6)(B) of the Inter- 9 nal Revenue Code of 1986 is amended by striking 10 VerDate Sep 11 2014 19:14 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2894.IH H2894 khammond on DSKBBV9HB2PROD with BILLS 2 •HR 2894 IH ‘‘$10,000 ($5,000 in the case of a married individual filing 1 a separate return)’’ and inserting ‘‘$15,000 (twice such 2 amount in the case of a joint return)’’. 3 (b) INFLATION ADJUSTMENT.—Section 164(b)(6) of 4 such Code is amended— 5 (1) by striking ‘‘and’’ at the end of subpara- 6 graph (A), by striking the period at the end of sub- 7 paragraph (B) and inserting ‘‘, and’’, and by insert- 8 ing after subparagraph (B) the following new sub- 9 paragraph: 10 ‘‘(C) in the case of a taxable year begin- 11 ning in a calendar year after 2019, the $15,000 12 amount in subparagraph (B) shall be increased 13 by an amount equal to— 14 ‘‘(i) such dollar amount, multiplied by 15 ‘‘(ii) the cost-of-living adjustment de- 16 termined under section 1(f)(3) for the cal- 17 endar year in which the taxable year be- 18 gins, determined by substituting ‘calendar 19 year 2018’ for ‘calendar year 2016’ in sub- 20 paragraph (A)(ii) thereof.’’, and 21 (2) by adding at the end the following: ‘‘Any in- 22 crease determined under subparagraph (C) shall be 23 rounded to the nearest multiple of $100.’’ 24 VerDate Sep 11 2014 19:14 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2894.IH H2894 khammond on DSKBBV9HB2PROD with BILLS 3 •HR 2894 IH (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 December 31, 2018. 3 SEC. 3. INCREASE IN CORPORATE INCOME TAX RATE. 4 (a) IN GENERAL.—Section 11(b) of the Internal Rev- 5 enue Code of 1986 is amended by striking ‘‘21 percent 6 of taxable income.’’ and inserting ‘‘the applicable percent- 7 age of taxable income. For purposes of the preceding sen- 8 tence, the term ‘applicable percentage’ means such per- 9 centage as the Secretary determines (not later than 60 10 days after the date of the enactment of this sentence) will 11 result in an increase in revenues to the Treasury (relative 12 to the revenues that the Secretary estimates would have 13 been received in the Treasury if the applicable percentage 14 were 21 percent) equal to the reduction in revenues to the 15 Treasury which the Secretary estimates will occur by rea- 16 son of the amendment made by section 2 of the Save the 17 State and Local Tax Deduction for Middle Class Families 18 Act of 2019.’’. 19 (b) EFFECTIVE DATE.—The amendment made by 20 this section shall apply to taxable years beginning after 21 December 31, 2018. 22 Æ VerDate Sep 11 2014 19:14 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2894.IH H2894 khammond on DSKBBV9HB2PROD with BILLS