Underwood Continues Fight for Middle Class Tax Relief Before Ways and Means Committee; Local Illinois Leaders Join Call to Action | Representative Lauren Underwood
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Underwood Continues Fight for Middle Class Tax Relief Before Ways and Means Committee; Local Illinois Leaders Join Call to Action

June 25, 2019

Underwood’s legislation would help Illinois families being unfairly double-taxed due to changes in the state and local tax deduction in the 2017 Republican tax law

WASHINGTON— Today, Congresswoman Lauren Underwood (IL-14) spoke before the Ways and Means Committee to advocate for middle class families by promoting her legislation to provide tax relief to middle-class families who face new tax burdens under the 2017 Republican tax law. In March, Underwood 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.

"The one percent doesn't need a tax break on the backs of middle class families working hard to send their kids to college, pay for their family's health care expenses and save for the future," said Underwood. "I encourage my colleagues to join me in putting middle class families before corporations and the wealthy, and support a permanent fix to the cap on the SALT deduction."

Local leaders throughout Northern Illinois joined Rep. Underwood in calling for action.

"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.

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