Rep. Porter Leads Bipartisan Effort to Lower Orange County Taxes
Congresswoman demands House leadership make tax relief for Orange County families a priority
Washington, DC, April 23, 2019
Tags: Tax Fairness
Congresswoman Katie Porter (CA-45) led a bipartisan group of 24 colleagues demanding that Speaker Nancy Pelosi and Minority Leader Kevin McCarthy prioritize repeal of the State and Local Tax (SALT) deduction cap, which has caused many Orange County families to see their 2018 taxes go up. The SALT deduction cap, which was enacted as part of the Trump tax plan, limits the amount of state and local taxes families may deduct from their federal taxes.
More than 42,000 residents in the 45th District will no longer be able to deduct their full property taxes from their federal tax bill. The SALT deduction is so common-sense that it has been part of the U.S. tax code ever since it was established in 1913.
“I made a promise to Orange County families that I would put their interests first, and with the skyrocketing cost of housing, prescription drugs, and childcare, they can’t afford to pay a single extra dollar in taxes,” Porter said. “The double taxation and marriage penalty on families in the 45th District is unacceptable. I’m going to keep fighting to protect Orange County taxpayers by repealing the harmful SALT deduction cap.”
Estimates indicate that 37 percent of taxpayers in the 45th District use the SALT deduction, with an average deduction of $18,200 per household that used the deduction. By capping the deduction at $10,000, many middle-class families may end up with higher tax bills at the end of the year. What’s worse, the Trump tax bill imposes a marriage penalty. While unmarried individuals can each file for $10,000 worth of SALT deductions—totaling $20,000 worth of deductions—a married couple can only claim $10,000.
In a letter to Speaker Pelosi and Leader McCarthy, Porter and her colleagues wrote, “The $10,000 SALT deduction cap imposes higher federal taxes on millions of middle-class Americans, imposes an anti-family marriage penalty, and jeopardizes state and local services funded by these taxes. We urge you to make the rollback of the SALT deduction cap a priority in the 116th Congress.”
Congresswoman Porter has backed three bills to repeal the harmful limits on SALT deductions, including two bills that have bipartisan support. She has also collected stories from families in the 45th District who have seen their taxes go up as a result of the Trump tax plan.
Read the full letter from Congresswoman Porter HERE.