Rep. Jason Smith, R-Mo., chair of the House Ways and Means Committee, said there is only $50 billion available to increase the state and local tax deduction.
Rep. Mike Lawler, R-N.Y., and Rep. Nick LaLota, R-N.Y. are among those in the GOP in blue states who are threatening to vote against the budget reconciliation bill unless the SALT deduction is substantially increased.
The legislation calls for House Republicans to triple the SALT deduction from $10,000 to $30,000 and put a $400,000 income limit on the write-off, Politico reported. But that's not good enough for the five Republicans, who also represent New Jersey and California. LaLota has called for the SALT cap to increase to $62,000 for individuals and $124,000 for married couples.
Lawler and LaLota accused Smith of refusing to negotiate in good faith, while House Speaker Mike Johnson, R-La., said more discussions are expected over the weekend.
"The SALT Caucus summarily rejected 30k a few days ago, and yet the chairman presented 30k in the meeting," LaLota said this week. "I was disappointed that the committee chairman insulted us with fake numbers and fault conclusions."
SALT deductions have been capped at $10,000 since the Trump administration tax cuts were passed in 2017.
If Democrats stand united against the bill, Republicans can lose only three votes. House Republican leadership believes the longer the SALT crew holds out, the easier it will be to split it, hoping pressure from their colleagues and President Donald Trump will help fracture the caucus, Punchbowl News reported.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
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