Casten Votes to Restore State and Local Tax Deduction

December 20, 2019
Press Release

Washington, D.C – Today, U.S. Representative Sean Casten (IL-06) released the following statement after he voted to pass H.R. 5377, the Restoring Tax Fairness for State and Localities Act, fulfilling a promise he made to his constituents to repeal the disastrous state and local tax (SALT) deduction cap implemented in the 2017 Republican Tax Bill.

H.R. 5377 would lift the SALT cap deduction for years 2020 and 2021. The Republican Tax Cuts and Jobs Act of 2017 capped the SALT deduction at $10,000 for individuals and families, but not businesses. Republicans took this deduction away from working, middle class families, like those in Illinois 6th Congressional District, to provide tax breaks for corporations. The cap also threatens the ability of states and local communities to fund education and other essential public services adequately. By restoring the SALT deduction, it helps state and local governments adequately plan and fund education, child care, mass transit, health care, and many more important public services.

But this bill does more than undue the harm caused by the Republican tax bill, it improves the tax code by doubling the Teacher Tax Credit and creates a new tax credit for first responders. Now teachers, firefighters, paramedics, emergency medical technicians, and more can deduct up to $500 in out-of-pocket, professional costs.

Casten said, “From the very first tax code, our Founders recognized the importance of allowing a deduction for state and local taxes. They recognized the need for states and localities to protect revenue and to maintain local control in determining how to best administer public services. These public services include getting our children to school safely and on time when budgeting for school buses, ensuring police officers have the tools they need to protect our communities, budgeting for vital infrastructure investments that support our roads and public transportation, and allowing our local libraries to have the funds to spend on reading programs to help our young students. Budgeting for these decisions are best left to our states and the SALT deduction provides the financial stability to make those decisions. I came to congress to address the discriminatory SALT cap implemented last Congress, and I am proud to close out my first year as a Representative with a vote in support of tax relief to the residents of IL-06 and those across the country.”