Tax Reduction for Middle Class Families Bolstered by Legislation From Underwood Overcomes Hurdle, Passes House Ways and Means Committee

Effort includes an increase in expense deductions for teachers and first responders

WASHINGTON— Today, the House Ways and Means Committee advanced key legislation that would reduce taxes for middle class families. The Restoring Tax Fairness for States and Localities Act (H.R. 5377), co-sponsored and championed by Congresswoman Lauren Underwood (IL-14), would end the burden on middle class families caused by the 2017 Republican tax law's $10,000 cap on the state and local tax (SALT) deduction. This deduction was previously unlimited. The legislation that passed out of the Committee today would help hardworking families being unfairly double-taxed in two important ways: it would eliminate the marriage penalty immediately, and eliminate the SALT deduction cap altogether in 2020 and 2021. Additionally, the bill doubles the educator expense deduction to $500, helping over 13,000 teachers in the 14th District afford classroom supplies, and creates a new $500 expense deduction for first responders, helping to defray the cost of uniforms and training programs.

"When families filed their taxes their year, many were shocked to learn that they owed thousands more than in previous years due to changes to the state and local tax deduction in the 2017 Republican tax law. This is unacceptable, and our community is disproportionally affected; middle class families in the 14^th District do not deserve this double-tax," said Underwood. "I introduced a solution to provide relief for Illinois families, and I applaud the House Ways and Means Committee for advancing this important legislation. I urge my colleagues to join me in putting middle class families first and support this needed tax relief.

The Restoring Tax Fairness for States and Localities Act would help middle class families by:

• Eliminating the SALT marriage penalty in 2019 by allowing people who are married and filing jointly to double their deduction up to $20,000. This would help more than 7 in 10 taxpayer in the 14^th District who take the SALT deduction.

• Eliminating the cap on SALT deductibility in 2020 and 2021 to restore fairness and help all taxpayers who itemize their state and local taxes.
• Increasing the educator expense deduction from $250 to $500 and creating a new $500 expense deduction for first responders, helping over 13,000 taxpayers in the 14^th Congressional District.

In Congress, Underwood has continuously fought to help Illinois families being unfairly double-taxed due to changes in the state and local tax deduction in the 2017 Republican tax law. In March, Underwood first introduced H.R. 1757 with Representative Sean Casten (IL-6) to address the changes to SALT deductions included in the Tax Cuts and Jobs Act of 2017. In June, Underwood testified before the Ways and Means Committee to advocate for middle class families and urged the committee to consider her legislation. In July, Underwood supported the bipartisan H.J. Res. 72 to overturn harmful U.S. Treasury Department regulations aimed at restricting Americans from deducting charitable contributions from their federal taxes. In January, Underwood urged the Internal Revenue Service to address the disproportionate tax burden being placed upon Illinois families due to changes in the SALT deduction as passed in the Tax Cuts and Jobs Act. In a letter, Underwood expressed concern that current efforts by the IRS are insufficient. Underwood is a member of the SALT working group.