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AJR-15 State and local tax (SALT) deduction limitation: repeal.(2023-2024)

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AJR15:v99#DOCUMENT

Revised  May 20, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Joint Resolution
No. 15

Introduced by Assembly Member Irwin
(Coauthors: Assembly Members Addis, Bauer-Kahan, Berman, Friedman, Grayson, Hart, Low, Lowenthal, Maienschein, Pellerin, Petrie-Norris, Quirk-Silva, and Weber) Weber, Aguiar-Curry, Alanis, Alvarez, Bains, Bennett, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gallagher, Garcia, Gipson, Haney, Holden, Hoover, Jones-Sawyer, Kalra, Lackey, Lee, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Rendon, Reyes, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, and Zbur)

April 02, 2024

Relative to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AJR 15, as introduced, Irwin. State and local tax (SALT) deduction limitation: repeal.
This measure would urge the Congress of the United States to repeal the state and local tax deduction limitation so that residents of California and married taxpayers are no longer penalized by the federal tax code.
Fiscal Committee: YES  
WHEREAS, The state and local tax deduction, often referred to as the SALT deduction, is a federal tax benefit that encourages state and local investments in infrastructure, public safety, home ownership, and education; and
WHEREAS, In 2016, over 43,000,000 tax filers in the United States claimed the state and local tax deduction, representing well over 100,000,000 Americans or roughly 30 percent of all tax filers in the United States; and
WHEREAS, In 2016, over 5,800,000 California tax filers claimed the state and local tax deduction, or roughly 35.1 percent of California tax filers; and
WHEREAS, The state and local tax deduction helps prevent the double taxation of mandatory payments; and
WHEREAS, The Tax Cuts and Jobs Act of 2017 (Public Law 115-97) (TCJA) reduced federal investments in important public priorities like health care, education, public safety, and basic infrastructure; and
WHEREAS, Research has found that the TCJA resulted in growing economic inequality and concentration of wealth; and
WHEREAS, The TCJA contained a provision capping the state and local tax deduction at $10,000 for all taxpayers, including married couples filing joint returns; and
WHEREAS, The state and local tax deduction limitation included in the TCJA was specifically and unjustly intended to penalize the residents of California and other states with income taxes; and
WHEREAS, The state and local tax deduction limitation included in the TCJA unjustly penalizes married couples that would each be eligible for a $10,000 deduction if they filed their taxes separately; and
WHEREAS, The state and local tax deduction limitation included in the TCJA promotes double taxation, which distorts and reduces economic activity; and
WHEREAS, The TCJA expires in 2025 and the United States Congress is currently considering legislation that would provide parity for married couples who claim the state and local tax deduction; now, therefore, be it
Resolved by the Assembly and the Senate of the State of California, jointly, That the Legislature urges the Congress of the United States to repeal the state and local tax deduction limitation so that residents of California and married taxpayers are no longer penalized by the federal tax code; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the President and the Vice President of the United States, to the Speaker of the House of Representatives, to the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.
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REVISIONS:
Heading—Line 4.
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