5 blue-state Republicans willing to sink tax bill over state, local deduction

House GOP split over renewing SALT deduction in Trump's 'big, beautiful bill'

A congressional dispute over restoring a once-popular tax deduction may be enough to derail the “big, beautiful bill” that is key to enacting much of President Donald Trump’s second-term agenda. The dispute is occurring in an unlikely forum: the House Republican caucus, a body that is almost always in sync with the president. What's the dispute about? At issue is the income-tax deduction for state and local taxes, commonly referred to as SALT. T…

Disallowing Business SALT Raises Significant Revenue for Reconciliation but Slows Economic Growth

Pairing permanent TCJA individual tax cuts with new limits on business SALT deductions would shrink the economy, reduce American incomes, and increase the federal budget deficit, undermining the policy goals of TCJA permanence.

Want a recession? Kill this business deduction and wait

When President Donald Trump returned to office in January, nearly everyone in his circle agreed on the top priority: renewing the 2017 Tax Cuts and Jobs Act. Without action, a crushing 22% tax hike looms, threatening to undo the economic gains of the past decade. Extending the tax reform would also give businesses and investors the long-term stability they need to plan, expand, and hire. Repealing the C-SALT deduction would hammer small busine…

SALT deal elusive as moderates, hardliners dig in

House Republicans have yet to strike a deal on how to address the state and local tax (SALT) deduction cap, a lingering hang up that has emerged as one of the biggest sticking points in the party’s bill full of President Trump’s legislative priorities. Reps. Andrew Garbarino (R-N.Y.) and Young Kim (R-Calif.) — co-chairs of the SALT Caucus — huddled with members of the House Ways and Means Committee during their weekly lunch meeting on Wednesday …

Five Blue-State Republicans Hold Their Ground on State, Local Tax Deduction in Budget Fight

Five suburban Republican lawmakers in Democrat states are holding their ground, demanding that the Trump "big, beautiful" bill raise the state and local tax deduction.

5 blue-state Republicans willing to sink tax bill over state, local deduction

A bloc of five Republicans from suburban districts is setting itself apart from the larger group of Republicans who want to raise the controversial state and local tax (SALT) deduction cap. The lawmakers are saying they’re prepared to vote no as a group on the wide-ranging tax and spending cut package key to President Trump's agenda if they don’t get the raise they want. The group consists of Reps. Andrew Garbarino (N.Y.), Nick LaLota (N.Y.), Mi…