House Republican leadership offered to increase the cap on state and local tax deductions as they negotiate with blue-state Republicans holding up passage of the reconciliation bill.
Leadership offered a $40,000 cap on deductions for individuals and $80,000 for joint filers, Politico reported. The SALT Republicans, who represent high-taxed blue states like New York, New Jersey, and California, are pushing for the cap to increase to $62,000 for individuals and $124,000 for joint filers.
Rep. Mike Lawler, R-N.Y., recently rejected legislation from the House Ways and Means Committee that would increase the cap from $10,000 to $30,000 for those making under $400,000. Lawler has argued that Republicans like him are the reason the GOP has a majority in Congress.
Other members of the SALT crew are Rep. Nick LaLota, R-N.Y., Rep. Andrew Garbarino, R-N.Y., Rep. Tom Kean, R-N.J., and Young Kim, R-Calif.
The deduction was capped at $10,000 in 2017 when President Donald Trump's tax cuts were passed.
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 Trump will help fracture the caucus, Punchbowl News reported.
A cap on SALT will disappear in 2026 unless Congress passes legislation, which is what Republicans like Lawler and LaLota are aiming for, Punchbowl said, lessening their incentive to make a deal.
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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