U.S. Reps. Lauren Underwood and Sean Casten introduced a bill last week to provide tax relief to Illinois families they say were “unfairly harmed” by the Republican-backed tax cut bill in 2017.
The representatives argued the Tax Cuts and Jobs Act of 2017 disproportionately hurt families in their districts because of the new $10,000 cap to deduct state and local taxes (SALT) when filing their federal taxes. The deduction was previously unlimited, according to a news release.
“As families in the 14th District file their taxes this year, many are getting horrible and unexpected news – they owe thousands more than they did last year because they can no longer deduct all of their state and local taxes, thanks to changes in the recently enacted Republican tax law,” Underwood said. “This is unacceptable. Our community does not deserve to be double-taxed.”
The bill would raise the cap on the SALT deduction from $10,000 to $15,000 for individual filers.
They said taxpayers making up to $200,000 would benefit from their bill. It also would eliminate what they called the “marriage penalty” by allowing joint filers to deduct up to $30,000 in SALT from their federal taxes.
“This was a top-of-mind issue,” Casten said. “For the last year, we have heard people screaming at us, ‘You have to change this tax bill.’”
Underwood and Casten have been working on this issue since joining Congress in January, when they sent a letter to the Internal Revenue Service urging it to address the disproportionate tax burden on Illinois families because of the changes in the tax code. They expressed concern that current efforts are insufficient.