Republicans in the GOP-led House are struggling to reach an agreement for the state and local tax (SALT) deduction cap being considered for President Donald Trump’s “one big, beautiful bill.”
In the 389-page tax package released on Monday, there was a provision to increase the SALT deduction cap to $30,000 for individuals earning $400,000 or less, up from the current $10,000 limit from the 2017 Tax Cuts and Jobs Act that is set to expire at the end of this year.
The House Ways and Means Committee advanced the tax measure in a 26-19 vote along party lines on Wednesday morning, but Republicans from high-tax blue states such as New York, New Jersey, and California are fighting for a higher ceiling.
After Ways and Means Chairman Jason Smith (R-MO) posted on X a photo of Trump at McDonald’s and saying, “Thanks for playing, @WaysMeansCmte,” Rep. Mike Lawler (R-NY) replied, “You forgot to add SALT with those fries, Chairman.”
You forgot to add SALT with those fries, Chairman. 🧂 🍟 https://t.co/QhGAUZjxla
— Mike Lawler (@lawler4ny) May 14, 2025
GOP lawmakers who want a SALT deduction cap increase have star power in Rep. Elise Stefanik (R-NY), who is considering a run for New York governor after Trump pulled her nomination to become U.S. ambassador to the United Nations. She joined other New York Republicans for a May 8 statement that warned a flat $30,000 SALT deduction cap would not get their support.
“[It] risks derailing President Trump’s One Big Beautiful Bill,” they said. “New Yorkers already send far more to Washington than we get back — unlike many so-called ‘low-tax’ states that depend heavily on federal largesse. A higher SALT cap isn’t a luxury. It’s a matter of fairness. We reject this offer.”
Some House conservatives, who are focused on cutting how much the federal government spends and reining in a national debt that is approaching $37 trillion, have voiced reservations about the SALT deduction cap.
“The top Congressional districts taking advantage of SALT (State & Local Tax) deductions (i.e., they have high state & local taxes on high incomes. Mostly Dem, heavily CA, Swamp (MD, VA), & NY,” Rep. Chip Roy (R-TX) said in a post on X last month. “In fairness, property taxes in TX are horrible, but we shouldn’t subsidize that either!”
Democrats are pushing in the opposite direction.
House Minority Leader Hakeem Jeffries (D-NY) indicated that he would rather not have a SALT deduction cap at all, as it was before the 2017 tax law, saying on X that Republicans “must now fully restore it or be completely exposed for their phony advocacy.”
The New York Post reported that Rep. Tom Suozzi (D-NY) offered an amendment to increase the SALT deduction cap to $80,000 and pay for it by raising the tax rate on top earners from 37% to 39.6%, but that proposal was rejected by the Ways and Means Committee.
Trump himself seems to be on board with a change.
During the 2024 campaign, Trump posted on Truth Social that he would “get SALT back.” CNBC noted that after Trump began his second term, he told Fox News that he would “love to see something happen on SALT.”
Lawmakers will now have to negotiate a resolution before the tax package is added to other parts of the “one big, beautiful bill” and a final vote by the full House. Republicans have a 220-213 majority, meaning there can only be a few defectors for the bill to pass if all Democrats vote against it.
Speaker Mike Johnson (R-LA) reportedly predicted that Republicans would need until the weekend to reach a deal on SALT. He’s been gunning to have the House finish up with the overall spending bill by Memorial Day.
“We have a delicate balance to maintain to get 218 votes on one of the largest and most comprehensive and complex pieces of legislation that’s ever been drafted by Congress,” Johnson said, per a post on X from a congressional journalist. “So yeah, my concern is always the vote total, but I’m very confident that we’ll be able to deliver that.”
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