California Republican leads push on bigger standard deduction – Roll Call

Steels bill would keep a $12,000 base standard deduction for individuals, $18,000 for heads of household and $24,000 for married couples filing taxes together. But those figures would end up higher thanks to yearly adjustments for inflation. The standard deduction for the 2023 tax year is $13,850 for individuals, $20,800 for heads of household and $27,700 for joint tax filers.

Permanently expanding the standard deduction could cost more than $1 trillion over a decade, based on the Congressional Budget Offices estimate from last May, a price tag that could complicate advancing it without offsetting cuts to other deductions in the tax code. But the proposal gives Republicans a chance to show off their dedication to helping those less well-off.

The standard deduction is more often used by lower and middle-income households, with itemized deductions tending to offer a bigger benefit for wealthier taxpayers that spend more on things like charitable donations. In 2020, about 95 percent of standard deductions were claimed by households earning less than $200,000, according to IRS data.

Joining Steel on the bill are fellow Ways and Means Committee Republicans Adrian Smith of Nebraska, David Kustoff of Tennessee, Beth Van Duyne of Texas, Brad Wenstrup of Ohio, Drew Ferguson of Georgia, Mike Kelly of Pennsylvania, Randy Feenstra of Iowa and Carol Miller of West Virginia.

Steel taking the lead on the bill is notable. Shes part of a bipartisan SALT caucus including House members that, in some form, take issue with the $10,000 cap on deducting state and local taxes under the 2017 tax law.

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California Republican leads push on bigger standard deduction - Roll Call