Overview

• The $10,000 SALT deduction cap, introduced in the 2017 Tax Cuts and Jobs Act, remains a key sticking point in President Trump's proposed tax legislation.
• Five Republican lawmakers from high-tax blue states are withholding their votes, demanding a significant increase to the SALT cap to benefit their constituents.
• Fiscal conservatives oppose raising the cap, citing concerns that it could add hundreds of billions to the federal deficit over the next decade.
• Proposals for new cap levels, including $100,000 for single filers and $200,000 for married couples, have yet to gain consensus in the House Ways and Means Committee.
• With a razor-thin three-seat GOP majority, Speaker Mike Johnson faces mounting pressure to resolve the impasse before Memorial Day reconciliation deadlines.