Speaker Mike Johnson (R-La.) and Treasury Division Secretary Scott Bessent stated negotiations over the state and native tax (SALT) deduction cap are “very, very close” to a conclusion, a constructive signal for Republicans as they race to place the ending touches on their sprawling tax cuts and spending package deal.
Johnson and Bessent met with GOP senators throughout their lunch Friday to pitch them on the framework they agreed to with a handful of average Home Republicans from high-tax blue states. Sen. Kevin Cramer (R-N.D.), who was on the gathering, stated the proposal would make the SALT deduction cap $40,000 for 5 years, then $10,000 for the next 5 years.
Rising from the huddle, each Johnson and Bessent stated talks had been nearing the tip.
“I believe they will,” Johnson stated when requested if Senate Republicans would settle for the SALT plan. “They’re going to digest the final calculations, but I think we’re very, very close to closing that issue out.”
Bessent echoed that sentiment, saying negotiations had been “very, very close” and noting the reception amongst Senate GOP members to the proposal was “varied.”
The SALT deduction cap has been one of many thorniest hangups stalling progress on the GOP’s “big, beautiful bill,” which leaders try to ship to President Trump by a self-imposed July 4 deadline.
The Home’s model of the invoice included a $40,000 deduction cap — quadruple the $10,000 in present legislation — for people making $500,000 or much less. The Senate’s version of the laws, nevertheless, proposed a $10,000 cap, sparking howls amongst Home Republicans.
Many Senate Republicans have wished to cut down the Home’s deduction cap, threshold and phaseouts to extend financial savings, particularly as not one of the higher chamber’s GOP members are from high-tax blue states.
Information surfaced of a possible SALT breakthrough Friday morning, with sources telling The Hill that the administration and key members of the SALT Caucus had been zeroing in on an settlement.
Not all lawmakers within the SALT Caucus, nevertheless, are on board. Rep. Nick LaLota (R-N.Y.), who has been some of the vocal within the group, advised reporters earlier Friday that he “heard of a deal” involving a $40,000 cap for 5 years after which a $10,000 cap for the next 5 years, which was a nonstarter for him.
“I’m a hard no on that,” he stated of the blueprint, saying the proposal “just affirms the very thing I’ve been against for so long.”
