Representative Lauren Underwood

Representing the 14th District of Illinois

Underwood Continues to Fight for Middle Class Tax Relief, Joins Bipartisan Resolution to Strike Down Treasury Department SALT Regulations

July 17, 2019
Press Release

WASHINGTON— Today, Congresswoman Lauren Underwood (IL-14) joined 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. On June 13th, the Treasury Department issued final regulations barring municipalities across the country from establishing trusts that would accept payments from taxpayers to satisfy state and local tax liabilities.

In Congress, Underwood has worked hard to provide tax relief for Illinois families unfairly harmed by the Tax Cuts and Jobs Act of 2017. Underwood recently introduced H.R. 1757 with Representative Sean Casten (IL-6) to reverse a tax increase on middle class families created by the introduction of a $10,000 cap to the deductibility of state and local taxes (SALT) in the Tax Cuts and Jobs Act of 2017. H.R. 1757 would help middle-class families by increasing the current cap on SALT deductions from $10,000 to $15,000 for individual filers, eliminating the law’s marriage penalty by allowing joint filers to deduct up to $30,000, and adjusting the cap for inflation so the value of the deduction does not decrease over time. Because H.R. 1757 increases the SALT cap—which expires at the end of 2025— instead of repealing it, the significance of the benefit decreases as a taxpayer’s income rises above $200,000, extending the greatest benefit to middle class families.

“Middle class families in the 14th District of Illinois are being double-taxed due to changes in the state and local tax deduction from the Republican tax law, all so the one percent and big corporations can get a tax break they don’t need,” Underwood said. “I’m proud to work with my colleagues in the House and Senate to ensure middle class families aren’t disincentivized from investing in their communities because they now owe a higher federal tax bill.”

Local leaders throughout northern Illinois have been supportive of Rep. Underwood’s work, most recently when she went before the Ways and Means Committee to fight for middle class families who have been affected by the SALT deduction changes.

“Hard-working middle class residents of St. Charles, IL  would enjoy the benefits of a higher cap for SALT deductions. Encouraging this deduction supports wage earners and property ownership which in turn stabilizes local government revenues vital to quality service and resources in the community,” said Ray Rogina, Mayor of the City of St. Charles.

"When I meet with residents, I consistently hear about their high property taxes, which directly impacts their ability to stay in their homes, especially our seniors. Passing this legislation is so important to provide some relief to our taxpayers,” said Sandy Hart, Lake County Board Chair.

"There's no question that capping property-tax write-offs directly hurt Lake County taxpayers, who pay some of the highest property taxes in the country. We need to scrap that limit -- and expand federal tax deductions -- to provide meaningful tax relief to working Americans,” said John Wasik, Lake County Board Member (District 6) and Chair, Lake County Board Legislative Committee.

“As leaders in Will County who care about our community’s middle-class families, we express our strong support of Congresswoman Underwood’s legislation, H.R. 1757, which changes some of the negative impacts of recent federal law by increasing the amount that working families can deduct from certain state and local taxes. Our County will be more economically secure if this legislation is passed into law,” said Will County Executive Larry Walsh and Will County Board Speaker Denise Winfrey.

“The tax law, which was touted as good for the middle class, has instead been harmful to my constituents, who shoulder one of the highest property tax burdens in the nation. The SALT cap increases federal taxes on a large percentage of our homeowners, and hurts them not once, but twice, because it also devalues their homes and makes them harder to sell. As a result, McHenry County, which at one time was one of the fastest-growing counties in the nation, instead may end up with a net loss of population for the first time. I respectfully request Congress to pass H.R. 1757 to correct this unintended consequence, and deliver relief to hard-working McHenry County families,” said Jack Franks, McHenry County Board Chairman.

“Aurora was built by and is still sustained by hardworking families where every dollar counts. We applaud Congresswoman Underwood for her stalwart efforts and fully support H.R.1757 and its goal of providing tax relief to working families,” said  Richard C. Irvin, Aurora Mayor.

Information on Underwood’s legislation can be found here.