Section 1 Short title
This Act may be cited as the “Save the State and Local Tax Deduction for Middle Class Families Act of 2019”.
Save the State and Local Tax Deduction for Middle Class Families Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to increase the limitation on the deduction for State and local taxes, and for other purposes.
Sec. 2 Increase in limitation on deduction for State and local taxes
In general— Section 164(b)(6)(B) of the Internal Revenue Code of 1986 is amended by striking “$10,000 ($5,000 in the case of a married individual filing a separate return)” and inserting “$15,000 (twice such amount in the case of a joint return)”.
Inflation adjustment— Section 164(b)(6) of such Code is amended—
by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by inserting after subparagraph (B) the following new subparagraph:
“(C) in the case of a taxable year beginning in a calendar year after 2019, the $15,000 amount in subparagraph (B) shall be increased by an amount equal to—
“(i) such dollar amount, multiplied by
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2018” for “calendar year 2016” in subparagraph (A)(ii) thereof.”
by adding at the end the following: “Any increase determined under subparagraph (C) shall be rounded to the nearest multiple of $100.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2018.
Sec. 3 Increase in corporate income tax rate
In general— Section 11(b) of the Internal Revenue Code of 1986 is amended by striking “21 percent of taxable income.” and inserting “the applicable percentage of taxable income. For purposes of the preceding sentence, the term “applicable percentage” means such percentage as the Secretary determines (not later than 60 days after the date of the enactment of this sentence) will result in an increase in revenues to the Treasury (relative to the revenues that the Secretary estimates would have been received in the Treasury if the applicable percentage were 21 percent) equal to the reduction in revenues to the Treasury which the Secretary estimates will occur by reason of the amendment made by section 2 of the Save the State and Local Tax Deduction for Middle Class Families Act of 2019.”.
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2018.