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House Bill Would Eliminate $10,000 SALT Cap

House Democrats have proposed a bill that would remove the $10,000 cap on state and local tax (SALT) deductions, which had previously been unlimited prior to the passage of the Tax Cuts and Jobs Act, according to CNBC

The bill, called the "Restoring Tax Fairness for States and Localities Act" would increase the cap to $20,000 for married joint filers for the 2019 season, and then eliminate the cap entirely in 2020 and 2021. It would also restore the top tax rate to 39.6 percent after the TCJA reduced it to 37 percent, as well as reduce the income threshold at which it applies. 

Reps. Thomas Suozzi (D-N.Y), Bill Pascrell (D-N.J.), and Mike Thompson (D-CA) sponsored the bill, which is scheduled to be marked up by the House Ways and Means Committee today, although given that Congress is set to break soon, CNBC said it appears unlikely there will be much movement on this bill until next year.