Overview

• House Republicans are locked in negotiations over the state and local tax (SALT) deduction as they aim to finalize a reconciliation package by Memorial Day.
• Blue-state GOP members from New York, New Jersey, and California are pushing for significant SALT cap increases, with proposals ranging from $25,000 to $100,000.
• Fiscal conservatives, including Rep. Chip Roy, insist that any SALT cap hike must be offset by spending cuts to avoid adding to the federal deficit.
• Discussions include potential measures such as income thresholds, marriage penalty relief, and targeting middle-class families for SALT relief.
• House GOP leaders and the Ways and Means Committee have yet to reach consensus, with the reconciliation package also addressing defense, immigration, and debt limit priorities.