Referred to the House Committee on Ways and Means.
This bill repeals the limitation in Internal Revenue Code section 164(b)(6) that capped federal deductions for certain State and local taxes (the $10,000 SALT cap). The repeal would restore full deductibility of qualifying state and local taxes for taxable years beginning after December 31, 2024.
Distributional effects: liberals see wealthy gains, conservatives see broad taxpayer relief
Relative to its intended legislative type, this bill is a straightforward substantive amendment to the Internal Revenue Code that clearly and precisely removes the SALT deduction limitation by striking paragraph (6) of section 164(b) with a defined effective date.
This bill repeals the limitation in Internal Revenue Code section 164(b)(6) that capped federal deductions for certain State and local taxes (the $10,000 SALT cap).
The repeal would restore full deductibility of qualifying state and local taxes for taxable years beginning after December 31, 2024.
Clear, administrable change but large fiscal cost and partisan controversy lower odds unless combined with offsets or broader package.
Relative to its intended legislative type, this bill is a straightforward substantive amendment to the Internal Revenue Code that clearly and precisely removes the SALT deduction limitation by striking paragraph (6) of section 164(b) with a defined effective date.
Distributional effects: liberals see wealthy gains, conservatives see broad taxpayer relief
These are examples from the analysis, not a ranked list of the most-affected groups.
Distributional effects: liberals see wealthy gains, conservatives see broad taxpayer relief
Likely to oppose the bill overall.
It is seen as a tax break that mainly benefits higher-income taxpayers and high-tax states while reducing federal revenues.
Mixed view; appreciates constituent relief in high-cost states but worries about federal revenue loss and regressivity.
Would seek offsets or targeting to make it fiscally responsible.
Likely to strongly support the repeal.
Seen as restoring taxpayer relief, defending state tax autonomy, and reducing federal tax burdens.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Clear, administrable change but large fiscal cost and partisan controversy lower odds unless combined with offsets or broader package.
The bill has not accumulated any surfaced votes yet.
Distributional effects: liberals see wealthy gains, conservatives see broad taxpayer relief
Clear, administrable change but large fiscal cost and partisan controversy lower odds unless combined with offsets or broader package.
Relative to its intended legislative type, this bill is a straightforward substantive amendment to the Internal Revenue Code that clearly and precisely removes the SALT deduction limitation by striking paragraph (6) of…
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