President Donald Trump’s “one big, beautiful bill” could be in jeopardy over a major SALT disagreement.
Not the kind of salt that you keep in a shaker on the dinner table, but the cap on the state and local tax (SALT) deduction. A large increase in the SALT limitation could make extending the 2017 Trump tax cuts fiscally unworkable and open the door to large-scale tax increases.
The federal tax code allows individual and married filers to claim a deduction on some state and local taxes (generally for income and property taxes), but the deduction amount is limited to $10,000 per filer.
However, some members of Congress want to raise that cap to more than $30,000, or even to remove the limitation on state and local tax deductions altogether.
And to what end?
For most Americans, raising the SALT cap above $10,000 wouldn’t reduce their taxes…
