Republicans pushing for an increase in the state-and-local-tax deduction, or SALT, are expected to make their final case at a Ways and Means Committee GOP lunch meeting Wednesday, according to two people granted anonymity to discuss the private plans.
Reps. Andrew Garbarino (R-N.Y.) and Young Kim (R-Calif.), co-chairs of the GOP SALT Caucus, plan to attend as the tax-writing committee moves closer to a decision over how much larger to make the deduction in the Republican domestic policy bill and what parameters they’ll use to keep the costs down.
Senior Republicans in recent days have made clear both in public and private that Ways and Means Republicans will have the ultimate say over the matter, not SALT Republicans. The panel is hoping to release legislation and advance it through committee by next week. A committee spokesperson declined to comment.
Four other people familiar with the matter expect the final Ways and Means decision on SALT to include an income cap on the deduction to limit the cost and to address objections to increasing the blue-state tax break from other parts of the Republican conference. A group within the SALT caucus is deeply opposed to such income caps and is likely to balk at any proposal that includes the provision.
Republicans limited the deduction to $10,000 as part of the 2017 tax bill that they are now trying to extend. It’s mainly utilized in high-tax blue states, but swing-district House Republicans have made increasing the deduction a red line for securing their support for the GOP megabill.
Lawmakers’ inability to resolve the SALT issue so far is part of what’s stalling negotiations on the broader bill, which is stacked with President Donald Trump’s policy priorities. White House officials have been checking in this week with the SALT holdouts as leadership pushes to finalize an agreement.
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