Fully repeal the state and local tax deduction
What the document says“The individual state and local tax deduction, which was temporarily capped at $10,000, should be fully repealed.”
The chapter groups this with permanently repealing deductions the 2017 law temporarily suspended, naming the bicycle commuting exclusion, non-military moving expenses and miscellaneous itemized deductions, and with repealing deductions for educational expenses and special business preferences.
What the document actually says“The individual state and local tax deduction, which was temporarily capped at $10,000, should be fully repealed.”
You can deduct state and local tax from your federal bill. That should end.
People can subtract state taxes from their federal tax. A recent law limited that to $10,000. The book wants it removed entirely.
To provide for reconciliation pursuant to title II of H. Con. Res. 14
2025-07-04 · 139 Stat. 72
Section 70120 of the 2025 tax law acts on the same deduction and goes the other way. It replaces the flat $10,000 cap with an applicable limitation amount of $40,000 for 2025, $40,400 for 2026 and 1 percent more each year through 2029, reduced by 30 cents for each dollar of income above a threshold starting at $500,000 but never below $10,000, and returning to $10,000 for years after 2029. The deduction is widened for five years rather than repealed. Where the fit breaks down: full repeal, which is what the chapter asks, is not done here or anywhere else in the record. Section 70110 of the same law does terminate miscellaneous itemized deductions other than educator expenses, which is one of the items the chapter groups with this request.
The chapter asked that the state and local tax deduction be wiped out. The 2025 tax law went the other way. It raised the cap from $10,000 to $40,000 for 2025, with small rises through 2029. The cap drops back to $10,000 after that, and the deduction is never repealed.