The House tax subcommittee has proposed state and local tax (SALT) deductions that are much smaller than those desired by many Republican lawmakers from New York, New Jersey, and California, Bloomberg reported Monday.
Lawmakers from the high-taxed states want a $62,000 deduction cap for individuals, or twice that for couples, a source told Bloomberg. They also demand the levels are indexed for inflation in future years and that the higher limits are available for taxpayers starting in 2025.
However, the panel's draft bill to renew President Donald Trump's tax cuts calls for increasing the SALT deduction from the current $10,000 to $30,000 for couples and limits the write-off to households earning $400,000 or less, the outlet said.
The report added that individuals earning up to $200,000 would be able to claim $15,000 in SALT deductions.
Republicans in districts with a lot of high earners also likely will push back on the proposal's income limits for the tax break.
Talks concerning SALT deductions are said to be fluid as lawmakers continue to debate the details of the package, a source told Bloomberg.
The House Ways and Means Committee is slated to debate the tax legislation Tuesday.
The SALT deduction, a provision in the U.S. tax code, allows people who itemize deductions to further reduce how much federal tax they owe based on how much they spent in state and local taxes.
Punchbowl News reported last week that a group of Republican congressmen in blue states said they will oppose the GOP budget bill unless they get the deal they want on SALT.
"It is a hill I am willing to stake my entire congressional career on," Rep. Nick LaLota, R-N.Y., told the outlet.
New York Reps. Mike Lawler, LaLota, Andrew Garbarino and Elise Stefanik, plus California Rep. Young Kim previously rejected a $30,000 SALT cap. They have said that amount is insufficient.
Speaker Mike Johnson, R-La., told reporters Monday that no final SALT limit had been set.
"There were lots of numbers discussed," Johnson said after meeting with lawmakers concerned about the tax break, Bloomberg reported.
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Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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