Johnson, SALT Republicans zero in on critical agreement

[BumRushDaShow]

Source: The Hill

05/20/25 9:20 PM ET


Speaker Mike Johnson (R-La.) and moderate Republicans have zeroed in on an agreement for the state and local tax (SALT) deduction cap, three sources told The Hill, solving a critical hang-up that has dogged the party’s “big, beautiful bill.” The proposal would increase the SALT deduction cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income, three of the sources said. One source said the level would increase 1 percent a year over 10 years.

That marks an increase from the $30,000 cap with a $400,000 income cap currently in the bill — a provision that SALT Caucus members vehemently rejected. The House Rules Committee is scheduled to convene at 1 a.m. Wednesday, during which the panel will consider changes to the bill.

While several members of the SALT Caucus are supportive of the plan, according to sources, Johnson will need to sell the proposal to hardline conservatives — including many in the House Freedom Caucus — who have been resistant to a significant hike to the deduction cap.

Exiting a meeting in the Speaker’s office Tuesday night, members of the SALT Caucus said they did not yet have a firm deal, but signaled significant progress. “We weren’t even in the same universe a couple of days ago. We’re on the same ballfield now,” Rep. Nick LaLota (R-N.Y.) told reporters.

Read more: https://thehill.com/homenews/house/5310851-republicans-salt-deal-trump-bill/

[JustABozoOnThisBus]

1. To me, SALT will always be Strategic Arms Limitation Treaty,

and why is THAT in Trump's Big Belligerent Bill?

[BumRushDaShow]

2. LOL

The last iterations of that were START (Strategic Arms Reduction Treaty), START II, and New START - the 2 former expired and the latter had gone bye bye with Russia's invasion of Ukraine.

[JustAnotherGen]

3. SALT has been around since 1913

The Revenue Act of 1913 acknowledged that some states preferred to take care of themselves as opposed to having the boot of the Federal Gov on their necks.

[Mr.WeRP]

7. No it hasn't, not the SALT from Trump's 2017 tax build

The SALT being talked about here is a cap on deductions of state and local taxes (SALT). There was no cap before Trump, who capped it at 10k to hurt blue states. How does it hurt blue states? It means people who pay more than 10k on state and local taxes (income, property, excise) must pay federal taxes on those taxes, which technically isn’t net income for them. This is pretty much anyone making 60k or more in MA who owns a home. Similar for CA and other blue states. This cap started an exodus from blue states to red states that don’t have income tax (TX, FL).

[JustAnotherGen]

8. Yes it WAS

There was a deduction since 1913. The tax and Jobs Act CAPPED it in 2017.

No need to tell me - I've been the single most shrill poster about this at DU since the cap implementation.

I live in NJ. Trust me - we've Been fucked over ten times till Tuesday by this bullshit red state welfare program. Our property taxes are JUST under 10K per year.

And its critical.that people know that the State and Local Tax Deductions were a key part of the 1913 tax law. The social contract has been broken.

[Mr.WeRP]

9. Ok we are saying the same thing. I misunderstood your response

Yes SALT has been dully deductible since then. I thought you meant the cap on SALT had existed since 1913.

[JustAnotherGen]

10. Indeed - we are the same

Flash point.😃

[Attilatheblond]

4. So, people rich enough to live well off investments rather than pay checks get more SALT breaks

maybe on more than one home?

Yeah, that helps working people.... NOT

[LauraInLA]

6. We're middle class in Southern CA, and this will definitely help us. We took a definite tax hit when the deduction

was limited. Consider that anyone earning $100,000 annually should be considered low-income here.

[JustAnotherGen]

11. In my Borough in NJ

A family of four making 115$ K a year has been severely impacted.

He is a Borough Public Works employee and she works for the County daycare.

Property taxes ~ about 9K. The majority of that goes to our public schools. They drive late model cars. Their home is a 1500 sq foot cape cod.

It wasn't intentional, but that can be very demeaning to Working Class people in NJ.

And yes - like me - They are secessionists who find this taxation with under representation intolerable.

Dollars that are not weighted for states that put the oxygen masks on themselves - are just numbers.

Remember - they also pay state income taxes, and have mortgage interest.

Statements about "second homes" are why his wife was laughing about the misery in Missouri and Kentucky a few days ago. Followed by "Good. Now they know how it feels".

[jgmiller]

5. I would be willing to bet they will then lower the standard deduction

They aren't going to give anything to anyone for free if they aren't in the top 5%