US EditionJohnson offers $40,000 SALT deduction cap with income limits
- Speaker of the House Mike Johnson has secured a preliminary deal to increase the SALT deduction limit to $40,000 for taxpayers earning less than $500,000 annually.
- The deal followed earlier rejected proposals to increase the cap from $10,000 to $30,000 and responded to threats from blue state Republicans to oppose the budget unless concessions were made.
- The agreement proposes a 1% annual increase to the SALT deduction limit over a decade, maintains the cap thereafter, and still requires endorsement from key tax lawmakers and fiscal conservatives.
- Republicans highlight that limits on SALT deductions mainly advantage residents of expensive metropolitan regions such as New York City and Los Angeles, while GOP members from states with lower taxes remain hesitant to endorse the proposal.
- If approved, the proposal could secure GOP support from blue state Republicans and influence the 2026 midterm elections by addressing key tax concerns within the party.
30 Articles
30 Articles
House votes to increase SALT deduction
WASHINGTON (NEXSTAR) - House Speaker Mike Johnson (R-La.) reached a deal with Republican House members from blue states who pushed for an increase in the SALT deduction cap in President Donald Trump's 'big, beautiful bill', allowing it to pass the House. The Big Beautiful Bill that passed the House on Thursday would increase the SALT deduction cap from $10,000 to $40,000. Rep. Mike Lawler (R-N.Y.) led the charge in the House to get the SALT ca…
House Republican tax bill passes ‘SALT' deduction cap of $40,000. Here's who benefits
There’s currently a $10,000 limit on the federal deduction on state and local taxes, known as SALT. As part of President Donald Trump’s tax package, House Republicans on Thursday passed a SALT limit of $40,000 starting in 2025, up from $30,000 in a previous version of the bill. However, the proposal could still change significantly in the Senate. House lawmakers on Thursday morning passed changes for the federal deduction for state and local tax…
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