A bill that would allow married joint filers with incomes up to $500,000 to have their own $10,000 state and local tax deduction caps for tax year 2023 failed to progress to a House floor vote as congressional debate around the Tax Cuts and Jobs Act (PL 115-97) provision continues.
On the evening of February 14, the House voted 195-225 on a procedural rule that would have advanced the SALT Marriage Penalty Elimination Act (HR 7160) to a full vote. Eighteen Republicans joined a unified Democratic caucus in blocking the measure introduced by Representative Michael Lawler (R-NY) immediately following the House’s passage of the Tax Relief for American Families and Workers Act of 2024 (HR 7024), a bipartisan tax package currently stalled in the Senate that notably does not make changes to the SALT cap.
Lawler’s bill sought to rectify the so-called marriage penalty that applies the $10,000 cap to married couples filing together. The bill would raise the SALT cap for these taxpayers to $20,000. The House Rules Committee met early February 1 on an emergency basis to consider the legislation, which was drafted the night before. Democrats at that hearing rejected the usage of emergency procedures to quickly report the bill to the House and harpooned it for only applying to one year.
After Wednesday’s vote, Lawler issued a statement condemning House Minority Leader Hakeem Jeffries (D-NY) for rallying Democrats against his proposal. “Rather than join me in bipartisan cooperation to deliver for all New Yorkers Hakeem Jeffries, and House Democrats from across New York chose to play politics and stop SALT relief dead in its tracks, while Governor Hochul and Senators Schumer and Gillibrand remained silent,” said Lawler. “They put partisan politics ahead of what is best for the people they represent and it’s shameful.”
“While I am disappointed in the result, I remain undeterred. Along with my New York Republican colleagues, I will continue to fight for SALT tax relief and work towards a bipartisan legislative fix.”
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