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SALT caucus rejects tax-writing panel’s offer of $30,000 deduction cap

  • On May 8, 2025, four Republicans from New York's SALT caucus strongly opposed a House tax proposal that sought to set a $30,000 limit on deductions for state and local taxes.
  • The rejection followed unilateral action by House Speaker Mike Johnson and Chair Jason Smith to raise the SALT cap from $10,000 to $30,000 without full agreement, causing internal GOP tension.
  • The SALT deduction limit has posed challenges for taxpayers in states with elevated tax rates and living costs, such as California and New York, where lawmakers contend that a $30,000 cap still falls short of relieving their constituents’ financial burdens.
  • Rep. Johnson acknowledged hearing various figures and noted that members are continuing to deliberate, expressing confidence that they will identify a solution that addresses the needs of most constituents affected.
  • This intra-party dispute threatens GOP leaders' plans to advance President Trump's tax agenda, as the narrowly divided House could face difficulties passing the bill without a SALT cap resolution.
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Bloomberg broke the news in United States on Thursday, May 8, 2025.
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