Author Topic: 5 things to know about SALT, the tax break holding up Trump’s ‘big, beautiful bill’  (Read 80 times)

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 5 things to know about SALT, the tax break holding up Trump’s ‘big, beautiful bill’
by Tobias Burns - 05/20/25 2:33 PM ET

Republicans’ tax-and-spending cut package faces a number of hurdles in its path to President Trump’s desk, but the state and local tax (SALT) deduction cap could be the tallest to surmount.

Tax writers on the House Ways and Means Committee have offered to raise the cap to $30,000 for joint filers making up to $400,000 a year. But suburban Republicans from higher-tax blue states have said that number isn’t going to cut it and are threatening to spike the entire bill if they don’t get the increase they want to see.

Republican members of the SALT Caucus have advocated for a $62,000 cap and $120,000 for couples. GOP leadership reportedly discussed raising the cap to $40,000 for individuals and $80,000 for couples with hard-liners in their conference over the weekend, suggesting those could be the new numbers for a final compromise.

Here’s a look at what the SALT deduction cap is, how it works within the broader tax code, and why it’s controversial enough to jeopardize the entire GOP agenda.

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https://thehill.com/homenews/state-watch/5307949-salt-tax-cap-fight/
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