Underwood, Casten Introduce Legislation to Provide Tax Relief for Illinois Families Hurt by SALT Deduction Cap

April 8, 2021
Press Release
The SALT Fairness for Working Families Act would correct the large and disproportionate burden placed on middle-class families in northern Illinois by the 2017 Republican tax law

WASHINGTON—Today, Representatives Lauren Underwood (IL-14) and Sean Casten (IL-06) introduced legislation to provide tax relief to Illinois families unfairly harmed by changes to the State and Local Tax (SALT) deduction. The Republican tax law enacted in 2017 disproportionately hurt northern Illinoisans by capping the SALT deduction at $10,000.  The SALT Fairness for Working Families Act would help affected taxpayers by increasing the current SALT deduction cap, eliminating the marriage penalty, and adding an inflationary adjustment. 

“Tax reform should put working families first, but the cap on the State and Local Tax (SALT) deduction imposed by the Republican tax law has done just the opposite. As we emerge from the pandemic, it even more critical to fix the SALT deduction cap that unfairly burdens the middle class. The SALT Fairness for Working Families Act would alleviate this burden by restoring the SALT deduction for middle-class Illinoisans,” said Underwood.  

“For as long as we’ve had a tax code, the State and Local Tax (SALT) Deduction has existed to acknowledge the principle that citizens shouldn’t have to pay taxes twice,” said Rep. Casten. “We must provide tax relief to Illinois families unfairly harmed by the Republican Tax Plan, which our bill seeks to rectify by raising the current SALT deduction cap, eliminating the marriage penalty, and adding an inflationary adjustment. At a moment when so many Illinois families are struggling, it’s just common sense.” 

Nearly 2 million Illinois households claim the SALT deduction. Specifically, the SALT Fairness for Working Families Act would: 

  1. Increase the current cap on SALT deduction from $10,000 to $15,000 for individual filers. This will allow taxpayers in the 14th District making up to $200,000 to once again deduct their full SALT amount. 
  2. Eliminate the marriage penalty currently inherent in the Republican tax law by allowing people who are married and filing jointly to double their deduction up to $30,000. This will provide additional relief to the approximately 90 percent of filers in the 14th District of Illinois who file joint tax returns and are currently limited to the $10,000 cap afforded to individual filers.
  3. Adjust the cap for inflation so the value of the deduction does not decrease over time.

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