Some Senate Republicans hope to lower the state-and-local-taxes (SALT) deduction cap as part of the “big, beautiful bill” in a move that will likely prove a sticking point for Republicans during the reconciliation process.
The 2017 Tax Cuts and Jobs Act capped SALT deductions at $10,000, greatly angering blue-state lawmakers, whose constituents pay high state taxes. New York Republicans, in particular, have been among the most vocal advocates for its elimination.
The House passed its version of the “big, beautiful bill” with a $40,000 SALT cap, though some lawmakers in the upper chamber want a lower number. Sen. Steve Daines, R-Mont., told The Hill that the Senate version was “likely going be a lower number” than what the House had approved.
Johnson was able to secure the support of moderate Republicans by raising the SALT cap and a Senate-approved reduction may lower support in his chamber when the time comes to approve a final version.
