Senators propose bill to restore tax deductions

WFSB News 3

WASHINGTON (WFSB) - Connecticut's senators cosponsored a bill to repeal the president's tax cut act, which led to the double taxing of millions of middle class Americans.

Sens. Chris Murphy and Richard Blumenthal joined the legislation led by Sen. Bob Menendez and Rep. Bill Pascrell Jr. of New Jersey.

The bill would repeal the federal cap on state and local tax, or SALT, deductions imposed by the American Jobs and Tax Cut Act in 2017.

Murphy and Blumenthal said many taxpayers in Connecticut and New Jersey owe significantly more on their taxes as a result of the cap.

“The Republicans’ tax bill has been an all-around failure for working and middle-class Americans, and has exploded our deficit," Murphy argued. "Limiting people’s ability to deduct property taxes and other state and local taxes was a partisan trick aimed at hurting states like Connecticut. Families in Connecticut are starting to feel the impact as they file their taxes this season. We need to get rid of the SALT cap now."

Blumenthal said with tax return season in full swing, thousands of people have just now realized how the tax law has affected them.

"If Republicans in Congress and President Trump had listened to the American people, they might have understood the devastatingly unfair impact of capping the SALT deduction on middle-class families in states like Connecticut," he said. "Our bill would reinstate the SALT deduction, and provide some relief to those families who are struggling during tax season.”

The senators said the Stop Attacking Local Taxpayers (SALT) Act of 2019 fully restores the SALT deduction, which was part of the tax code since the federal income tax was created in 1913.

Their bill also restores the top individual income tax rate at 39.6%, the rate at which upper income was taxed prior to the passage of the Trump tax cuts in 2017.

They said the tax law, which passed through the Republican-controlled Congress in Dec 2017, gave huge tax breaks to the super rich and giant corporations, while hiking taxes on the middle-class and capping SALT at $10,000.