The trillion-dollar SALT question hanging over GOP tax overhaul

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Republicans are set to increase the $10,000 cap on state and local tax deductions as part of their major tax overhaul, but the size of the increase is a subject of negotiation between leadership and blue-state members who could tank the whole bill.

In lifting the cap, Republicans would be undoing a reform they won in 2017. But, to secure the votes of members of the party from high-tax states, Republican leaders have vowed to raise the cap as part of this year’s reconciliation, a legislative process that allows bills to bypass the filibuster and pass with only a simple majority in the Senate. They want to extend the 2017 Tax Cuts and Jobs Act and add new tax cuts proposed by President Donald Trump to the mix.

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