Rep. Porter Introduces Legislation to Lower Taxes for Orange County Families
SALT Act would provide immediate relief for middle class Californians squeezed by Trump tax law
Washington, February 25, 2022
Tags: Tax Fairness
Congresswoman Katie Porter (D-CA) and Congressman Tom Malinowski (D-NJ) this week introduced the Supporting Americans with Lower Taxes (SALT) Act to provide immediate relief for middle class families residing in states with high costs of living. The bill fully restores the state and local tax deduction for Americans making less than $400,000 a year, while phasing out the deduction for those making more than $400,000. It would apply the revenue raised over a decade to strengthen Medicare with new vision and hearing coverage.
“Middle class families in Orange County have been feeling the squeeze, and the Trump tax law’s cap on the state and local tax deduction has made it worse,” said Rep. Porter. “Our tax code should provide a level playing field across states, not punish some Americans for living in regions with high costs of living. Our SALT Act will restore fairness to our tax code, with sensible guardrails to prevent abuse by the ultra-wealthy.”
“When I first ran for Congress, I promised to right the wrongs of the 2017 GOP tax bill by restoring the SALT deduction for my middle class constituents,” said Rep. Malinowski. “The proposal Representative Porter and I are putting forward would keep that promise, while remaining fiscally responsible and delivering a new Medicare benefit that our seniors have long been waiting for. This is a win-win approach that we hope will produce compromise on the SALT issue.”
The state and local tax (SALT) deduction exists to prevent Americans from being taxed again at the federal level on income already taxed and taken by their states. This deduction has been in our tax code for over a century, since the inception of the federal income tax in 1913. In 2017, then-President Trump signed a tax law that imposed a $10,000 cap on the SALT deduction through 2025. This cap discriminates against taxpayers—who earn the same incomes—based solely on where they live, and punishes states where residents have chosen to pay for better schools and services with higher state and local taxes.
Specifically, the SALT Act would:
Click here to read the full text of the bill.