Trump Meets With GOP Lawmakers Over SALT Deduction Cap Debate

Blue-state Republicans push for higher SALT deduction limits, threatening to block Trump's tax agenda without changes.

The SALT Caucus, a group of blue-state Republican lawmakers, is meeting with President-elect Donald Trump to demand changes to the state and local tax (SALT) deduction cap implemented in 2017.
The current cap, set at $10,000, disproportionately impacts taxpayers in high-tax states like New York, New Jersey, and California, with lawmakers proposing increases to $100,000 for single filers and $200,000 for joint filers.
Trump previously expressed support for reversing or raising the SALT cap during his campaign, but fiscal conservatives in the GOP warn that such changes could add significantly to the federal deficit, complicating broader tax reform efforts.
The SALT Caucus has significant leverage in the narrowly divided House and is prepared to withhold support for Trump's tax, energy, and border agenda unless their demands are addressed.
Discussions this weekend are expected to focus on finding a compromise, with lawmakers signaling that full repeal of the cap is unlikely and negotiations will continue as part of the reconciliation process.