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GOP Tax Bill Faces Uncertainty Over SALT Deduction Dispute

A group of moderate Republicans demands greater relief for high-tax states, threatening the passage of the $4 trillion tax package.

Republicans in expensive blue states like New York and California are fighting for a larger SALT deduction in ongoing tax bill negotiations.
Mike Lawler and Elise Stefanik (AP)
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Overview

  • The proposed GOP tax bill raises the SALT deduction cap from $10,000 to $30,000 but phases it out for incomes above $400,000.
  • Moderate Republicans from high-tax states, including Reps. Mike Lawler and Jeff Van Drew, argue the increase is insufficient and are withholding support.
  • With a narrow 220-213 House majority, Republicans can afford to lose only a few votes, making the SALT provision a critical sticking point.
  • Analyses warn that fully repealing the SALT cap could add over $1 trillion to the national deficit over the next decade.
  • Taxpayers in states like New York, New Jersey, California, and Illinois would benefit most from changes to the SALT cap, deepening regional divides within the GOP.