Trump's Tax Agenda Faces GOP Divisions Over SALT Cap and Corporate Rates

Republican lawmakers grapple with internal disagreements on tax policy as Trump prioritizes extending 2017 tax cuts and advancing new proposals.

House Republicans from high-tax states like New York and California are pushing to raise or eliminate the $10,000 cap on state and local tax (SALT) deductions, a contentious issue within the GOP.
Fiscal conservatives in the party express concerns about increasing the federal deficit, with some suggesting corporate tax rate adjustments to offset costs of extending Trump-era tax cuts.
President-elect Trump is meeting with key lawmakers at Mar-a-Lago to navigate these divides and finalize a tax package that aligns with his broader $4.5 trillion agenda.
The GOP aims to pass the legislation through budget reconciliation, a process that avoids the Senate filibuster but requires near-unanimous support from Republican lawmakers due to slim majorities.
Proposals such as eliminating taxes on Social Security income, exempting tips from taxation, and raising the SALT cap face scrutiny over their high fiscal costs and potential benefits to wealthier households.