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House GOP Faces Internal Divisions Over SALT Cap and Spending Cuts in Major Tax Bill

Speaker Johnson works to reconcile moderate and conservative demands as the 'One Big Beautiful Bill Act' heads to Rules Committee Monday and a House vote next week.

President Donald Trump gestures during a business roundtable, Thursday, May 15, 2025, in Doha, Qatar. (AP Photo/Alex Brandon)
FILE - Speaker of the House Mike Johnson, R-La., talks to reporters just after House Republicans narrowly approved their budget framework, at the Capitol in Washington, April 10, 2025. (AP Photo/J. Scott Applewhite, File)
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Overview

  • The 'One Big Beautiful Bill Act' proposes permanent tax cuts, including a higher SALT deduction cap and a $30 million estate tax exemption, offset by $1 trillion in cuts to Medicaid and SNAP programs.
  • Moderate Republicans from high-tax states oppose the proposed $30,000 SALT cap, demanding more relief for their constituents and threatening to block the bill.
  • Conservative lawmakers, such as Rep. Chip Roy, argue the spending cuts are insufficient and warn the bill could increase federal deficits.
  • Speaker Mike Johnson is negotiating through the weekend to address factional disputes, aiming to secure the slim GOP majority needed for passage.
  • The bill is set for a Rules Committee review on Monday, with a House floor vote planned for next week, as leadership pushes to meet its self-imposed timeline.