The Democratic-controlled House passed a bill on Thursday that would do away with the $10,000 limit on the itemized deduction for state and local taxes for two years.
Legislators narrowly voted in favor and did so largely along party lines: 218 to 206.
The measure, dubbed the “Restoring Tax Fairness for States and Localities Act” or HR 5377, proposes increasing the so-called SALT cap to $20,000 for married taxpayers who are filing jointly in 2019.
It also calls for the elimination of the SALT cap in 2020 and 2021.
The bill, sponsored by Rep. Thomas Suozzi, D-N.Y, along with Reps. Bill Pascrell, D-N.J., and Mike Thompson, D-Calif., marked the latest effort by blue states to fight back against certain provisions in the Tax Cuts and Jobs Act.
Though the bill is unlikely to get much further in the remaining weeks of the year, there’s always the possibility it may return in 2020.
“There is no chance that this bill is getting through the Senate, but I think Democrats will continue to talk about the impact of the SALT deduction,” Kaeding said.
Legislators in support of the bill plan to continue pushing.
“This is going to continue to be an issue that comes up every year until we pass and sign it into law,” said Rep. Josh Gottheimer, D-N.J. “It’s a hit to so many parts of the country, a tax hike for my district and for a lot of us in the Northeast and on the coasts.”