House Republicans are proposing to raise the state and local tax (SALT) deduction cap to $30,000, up from its current rate of $10,000. The move was announced on Monday by the House Ways and Means Committee, chaired by Rep. Jason Smith, R-Mo.
The deduction would apply to single and joint filers who make $400,000 or less per year. The move would be a huge win for Republican members of Congress in blue states, who stand to benefit the most from the raise, given that blue states usually have higher state income tax rates.
The change in tax policy is expected to be hotly debated, given that some Republicans view the tax deduction as ultimately a form of federal subsidizing of blue state taxation policies. The tax policy will be discussed in the House Ways and Means Committee, which will have markups at 2 p.m. Tuesday.
The fight over the controversial tax deduction is
