05/08/2025

GOP Fight over SALT Deductions

The action has slowed Trump’s ‘big, beautiful bill’

The fate of President Donald Trump's tax legislation may rest on whether the GOP can find common ground on tax breaks for high earners in predominantly Democratic states — and the issue also could cost House Republicans their majority next year.

House Speaker Mike Johnson (R-LA) and a band of moderate Republican rebels are at loggerheads over how to handle changes to the state and local tax deduction, often called SALT. That provision allows individuals or married couples to subtract the amount they paid in state taxes from their federal tax bill, but it's been capped at $10,000 — well below what many taxpayers owe, especially in urban, high-cost-of-living areas — since 2017.

Even though it was his Tax Cuts and Jobs Act (TCJA) that limited the deduction, Trump made changing the cap one of a long list of campaign tax promises. All told, the tax plans he's made could cost up to $11 trillion over the next 10 years if Congress enacts them all, according to nonpartisan estimates.

Please select this link to read the complete article from The Washington Post.