Overview

• Negotiations among House Republicans over raising the $10,000 SALT deduction cap remain unresolved, with significant divisions between blue-state members and fiscal conservatives.
• A bloc of five suburban GOP lawmakers from New York, California, and New Jersey is united in demanding a higher SALT deduction cap to address what they see as unfair treatment of high-tax states.
• Hardline conservatives, including members of the Freedom Caucus, oppose increasing the cap, citing concerns about its impact on the federal deficit.
• Proposals under discussion include raising the cap to $15,000-$30,000 or $100,000-$200,000, with disagreements over income thresholds, marriage penalties, and other specifics stalling progress.
• The House Ways and Means Committee is set to mark up the tax portion of President Trump’s reconciliation bill next week, intensifying pressure to resolve the SALT impasse.