{"id":31018,"date":"2025-06-16T20:31:09","date_gmt":"2025-06-16T20:31:09","guid":{"rendered":"https:\/\/financialrush.com\/?p=31018"},"modified":"2025-06-16T20:31:09","modified_gmt":"2025-06-16T20:31:09","slug":"senate-to-maintain-cap-on-state-tax-deductions-imperilling-trumps-bill","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=31018","title":{"rendered":"Senate to maintain cap on state tax deductions, imperilling Trump\u2019s bill"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Your guide to what Trump\u2019s second term means for Washington, business and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=57e29823-2928-4ffe-bd4c-57608fccbd4b&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The US Senate\u2019s version of Donald Trump\u2019s flagship tax bill will not propose raising the cap on state and local tax deductions, in a move that threatens to torpedo the so-called \u201cbig, beautiful bill\u201d.<\/p>\n<p>The Senate finance committee is set to publish a draft bill on Monday afternoon that will keep the annual cap on the amount of state and local <a href=\"https:\/\/www.ft.com\/us-tax\" data-trackable=\"link\">taxes<\/a> taxpayers can deduct from their federal tax bills, commonly known as <a href=\"https:\/\/www.ft.com\/content\/9395550f-956a-439a-8dc7-7784b7afd87e\" data-trackable=\"link\">\u201cSalt\u201d<\/a> at the current level of $10,000, said two people briefed on the proposals.<\/p>\n<p>That stands in stark contrast to a House version of the bill that narrowly passed the lower chamber of Congress last month and raised the Salt cap to $40,000 a year. The House proposal would amount to a significant tax break for homeowners in states including New York, New Jersey and California, which have some of the highest property tax rates in the US. <\/p>\n<p>While people briefed on the plans insist the figure in the Senate bill should be seen as a \u201cplace holder\u201d while negotiations continue between key members of Congress and the White House, the move has prompted outrage from a group of House Republicans who see Salt as a make-or-break issue.<\/p>\n<p>\u201cI have been clear since day one: sufficiently lifting the Salt cap to deliver tax fairness to New Yorkers has been my top priority in Congress,\u201d said Mike Lawler, a Republican congressman whose district includes many of the affluent suburbs north of New York City.<\/p>\n<p>\u201cAfter engaging in good-faith negotiations, we were able to increase the cap on Salt from $10,000 to $40,000,\u201d Lawler added. \u201cThat is the deal, and I will not accept a penny less. If the Senate reduces the Salt number, I will vote no, and the bill will fail in the House.\u201d<\/p>\n<p>Any revisions to the <a href=\"https:\/\/www.ft.com\/content\/546e795a-0bd6-4915-9035-37c31f143b65\" data-trackable=\"link\">\u201cbig, beautiful bill<\/a>\u201d will need to pass the Senate and be rubber-stamped by the House before Trump can sign the legislation into law. <\/p>\n<p>Speaker of the House Mike Johnson cannot afford to lose more than a handful of votes when the bill returns to the lower chamber because Trump\u2019s party controls the House by a razor-thin margin.<\/p>\n<p>Elise Stefanik, a Republican congresswoman whose district spans part of upstate New York and is among Trump\u2019s fiercest defenders on Capitol Hill, said the cap would \u201chave to go up\u201d.<\/p>\n<p>\u201cEveryone knows this 10K number will have to go up. And it will,\u201d Stefanik said in a post to X. \u201cNY Republicans will fight and deliver real tax relief for our overly taxed constituents.\u201d<\/p>\n<p>The Salt cap has been divisive since it was first introduced as part of Trump\u2019s sweeping 2017 tax bill. Many of Trump\u2019s critics saw the move as unnecessarily punitive to residents of high-tax states where voters favour the Democratic party. <\/p>\n<p>Lawmakers from both parties are sceptical of the deductions, saying they amount to an unnecessary giveaway to the highest earners.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/57e29823-2928-4ffe-bd4c-57608fccbd4b\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington,&hellip;\n","protected":false},"author":5,"featured_media":31019,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-31018","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31018"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/31019"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}