H.R. 5377 – SALT: No
H.R. 5377 – SALT: No. This bill trades a temporary tax reduction for a permanent tax increase. It increases the deductions for state and local taxes to $20,000 for 2019 and eliminates it for 2020 and 2021. At the same time, it permanently increases the top marginal tax rate from 37 percent to 39.6 percent. I opposed the elimination of the SALT deduction in the original tax bill and fought to get the $10,000 deduction in the final version, and strongly support restoring the full deduction permanently. However, this bill only does so for three years, while permanently increasing the marginal tax rate. It is the marginal tax rate that affects economic growth – and this bill would do enormous damage to the economic expansion that the 2017 tax reform bill has accomplished.