Press Releases

Wexton Helps Pass Elimination of SALT Cap to Restore Major Tax Deductions for Nearly 150,000 VA-10 Households

Washington, December 19, 2019

Washington, DC -- Today, Congresswoman Jennifer Wexton (D-VA) voted to pass H.R. 5377, the Restoring Tax Fairness for States and Localities Act, which would eliminate the state and local tax (SALT) cap instituted by the 2017 Tax Cuts and Jobs Act (TCJA). Wexton is a cosponsor of the legislation and has been a forceful advocate for eliminating the SALT cap. Passage of this bill is significant for Virginia’s 10th Congressional District where over half of households claim the SALT deduction and an estimated 150,000 households have been impacted by this cap and could see savings with its removal.

“The SALT deduction has protected Virginia taxpayers from double taxation for over 100 years -- that changed when Donald Trump and Congressional Republicans imposed the SALT cap, hurting hardworking Virginians and over 11 million Americans,” said Congresswoman Jennifer Wexton. “Today, we are restoring this important tax relief and putting money back in the pockets of 150,000 households right here in the 10th District.”

WATCH: Rep. Wexton speaks in support of the Restoring Tax Fairness for State and Localities Act on the House floor.

The SALT deduction has protected taxpayers from double taxation since 1913 by allowing them to deduct all state and local taxes from their federal liability. That changed in 2017 when President Trump and the Republican majority in Congress passed the Tax Cuts and Jobs Act, instituting a $10,000 cap on the SALT deduction.

This has particularly impacted families in Wexton’s district. In 2017, the 10th District had the highest average SALT deduction in the commonwealth at $17,885, the greatest number of households claiming SALT at 213,500, and the highest percentage of households claiming SALT in Virginia at 52.7%.

The Restoring Tax Fairness for States and Localities Act temporarily repeals the cap on SALT deductions for the years 2020 and 2021. It also doubles the cap of $5,000 per individual for joint filers which was instituted by the TJCA and has resulted in an unfair “marriage penalty.”

The bill increases the deduction for school teachers’ out-of-pocket classroom expenses, from $250 to $1,000, saving money for over ten thousand teachers in Wexton’s district. It also establishes a new $1,000 deduction for out-of-pocket work-related expenses of first responders.

Last week, Wexton signed onto a letter to House Leadership urging them to bring H.R. 5377 to the floor before the end of the year. In April, Wexton released a report detailing the negative impacts of the 2017 Tax Cut and Jobs Act on homeowners in Virginia’s 10th District.

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