Schneider Announces Plan to Reinstate Full SALT Deduction
Schneider Announces Plan to Reinstate Full SALT Deduction
Plan Would Boost Home Values, Eliminate Double Taxation, and Support Towns and First Responders
Above: (left to right) Congressman Brad Schneider, Vernon Township Supervisor Jon Altenberg, Lake County Board Member Marah Altenberg, and Lake County Board Member Paul Frank fight to reinstate the SALT deduction
VERNON HILLS, IL – Today, Congressman Brad Schneider announced his plan to fully repeal the burdensome and punishing cap on the state and local tax (SALT) deduction that was included in the Republican tax package in 2017. Providing relief for Illinois taxpayers from this effective double tax is one of Brad’s top priorities in Congress. Brad was joined by Lake County Treasurer Holly Kim, Lake County Board Chairwoman Sandy Hart, Lake County Board Member Paul Frank, Lake County Board Member Marah Altenberg, Lake County Board Member Julie Simpson, Fox Lake Mayor and Lake County Municipal League President Donny Schmit, and Vernon Township Supervisor Jon Altenberg. Video from the event can be found here.
Last December, Brad led the charge to pass a bipartisan bill in the House that would restore the full SALT deduction. Additionally, in the original Heroes Act this May, Brad again included language to restore the SALT deduction.
“I am committed to ending the double taxation on Illinois families by restoring the full SALT deduction. In the current Congress, I've been an effective leader in the fight to restore SALT,” said Congressman Brad Schneider (IL-10). “In the next Congress, I will continue to work to restore tax fairness for Illinois residents, putting more money in their pockets and increasing home values.”
“As Lake County Treasurer, I look at tax bills daily, and I know that we pay some of the highest in Illinois. As a homeowner in Lake County, I too feel the sting. The hardworking middle class who doesn’t get corporate taxes depend on the ability to claim that SALT deduction,” said Lake County Treasurer Holly Kim.
“I’d like to thank Congressman Schneider for leading the way to restore this tax deduction. His efforts to repeal this cap on the SALT tax deduction will help taxpayers across Lake County,” said Lake County Board Member Paul Frank.
“My constituents lost the ability to write off thousands of dollars in taxes after President Donald Trump changed the tax code. Thank you to Congressman Schneider for introducing this important legislation that will help my constituents write off more in taxes,” said Lake County Board Member Marah Altenberg.
“The SALT cap hurt my neighbors and hurt myself. Many of my neighbors are paying more in taxes per year than they ever have before. We have somebody in the White House who pays almost no taxes. We need Joe Biden and Brad Schneider in Washington to repeal policies like the SALT tax that have negatively impacted our communities,” said Lake County Board Member Julie Simpson.
“As the Mayor of Fox Lake and President of the Lake County Municipal League, it is my duty to represent the diverse needs of Lake County citizens and local governments. Our residents, many of whom are small business owners and essential workers, have been hit hard by the coronavirus. Incomes have been reduced, jobs have been eliminated, and families are struggling to make ends meet, now more than ever. By eliminating the cap on the state and local tax deduction, and reinstating a full deduction, we can better serve our residents and bring much needed financial relief,” said Fox Lake Mayor and Lake County Municipal League President Donny Schmit.
“We have some of the highest property taxes in the nation. That alone is a travesty. What we need to do is allow them to take back that money and be able to support their families in this terrible time. I thank Congressman Schneider for his work on this issue,” said Vernon Township Supervisor Jon Altenberg.
Brad's remarks as prepared for delivery are below:
In 2017, Republicans passed a partisan tax hike bill that was disastrous for America and for Illinois.
It added to the national debt and added to the tax burden of many Illinois families by capping the State and Local Tax Deduction (SALT).
They decided to cap the SALT deduction at $10,000. It was as it is now both bad policy and bad politics.
The intention of the Trump administration was to punish blue states, like Illinois.
Illinois is a donor state: one of about ten states that sends more money to the Federal Government than what comes back to the state, like New York, Connecticut, and Massachusetts. We are already subsidizing other states while being punished for how we fund our state and local governments. Rather than having to suffer double taxation at the hands of this law.
We’ve seen this punishment attack home values, push out employers, and raise taxes for local working families. Here in the 10th District, more than 40% of our constituents are impacted. This law singlehandedly wiped out the nest eggs of families here who have been counting on their home’s value in retirement. And it makes it harder for our cities to provide essential services like police and fire departments, libraries, and public health services.
Not only did it punish residents in blue states, but the policy and tax bill at large added to our nation’s debt. Last year, the nonpartisan Congressional Budget Office projected that bill will add $1.9 trillion to deficits over 10 years, even after accounting for any growth effects.
We need a fair tax system for all. Our nation cannot depend on a double tax system that disproportionately impacts suburban Illinois.
In this election, I am committed to cutting taxes for Illinois families by ending double taxation and reinstating the full SALT deduction.
In the current Congress, I've been an effective leader in the fight to restore SALT. Last December, I led the charge to pass a bipartisan bill in the House that would restore the full SALT deduction. That bill, like so many others, now sits on Senator Mitch McConnell’s desk. In the original Heroes Act this May, we again included language to restore the SALT deduction.
These bills also answered how you would pay for it, by simply restoring the top tax rate to 39.6%. This rate was lowered by the Republican tax law and it’s now as easy as going back to how things were in 2015 for people earning above $400,000 per year.
In the next Congress, I have a plan to restore tax fairness for Illinois residents and increase home values:
With a Democratic House and President, we will have the legislative willpower to restore the SALT deduction in full. Vice President Biden's tax plan will not raise taxes on those who make less than 400,000 per year, and he supports repealing the cap on the state and local tax deduction. We need to remove Senator Mitch McConnell as majority leader and reprioritize these common sense, bipartisan measures.
Wednesday, October 14, 2020
For Immediate Release