Rep. Porter-backed Bill to Lower Orange County Taxes Clears Key Committee Hurdle
Congresswoman has been a leader in the bipartisan effort to restore important tax deduction for Orange County families
Washington, December 13, 2019
Tags: Tax Fairness
WASHINGTON—A bill backed by Congresswoman Katie Porter (CA-45) received the approval of the House Ways and Means Committee, bringing it one step closer to becoming law. The legislation would repeal the State and Local Tax (SALT) deduction cap, which caused many Orange County families to see their taxes go up in 2018.
Porter previously led a bipartisan letter to House leaders of both parties, calling on them to prioritize repealing the SALT deduction cap. Enacted as part of the Trump tax law, the cap resulted in more than 42,000 residents in the 45th District losing the ability to deduct their full property taxes from their federal tax bill.
“Working families in our community have had to pay the price for the Trump tax law’s giveaway to the country’s largest corporations,” Congresswoman Porter said. “I applaud my colleagues on the Ways and Means Committee for approving this important legislation to help Orange County’s middle-class families who are feeling the squeeze, but my work won’t be done until this bill passes Congress and is signed into law.”
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.
Reversing the Trump tax law’s increased taxes on Orange County families has been a key priority for Porter. In addition to this week’s legislation, Porter has backed two additional to repeal the harmful limits on SALT deductions. She previously testified before the House Ways and Means Committee about the need to reverse the SALT deduction cap. She also collected stories from families in the 45th District who have seen their taxes go up as a result of the Trump tax law.