SALT Caucus and GOP leadership reach tentative deal in win for tax bill

Members of the SALT Caucus and Republican House leadership have agreed to a compromise on raising the cap on state and local tax deductions, a breakthrough for the GOP as it tries to pass its $4 trillion tax-cut and spending bill.

The compromise, agreed to Tuesday night ahead of a key vote on the legislation in the House Rules Committee, would raise the cap on SALT deductions from $10,000 to $40,000, according to multiple reports, but limit the deductions to filers with incomes under $500,000. The higher cap would be permanent, unlike the existing cap, which is set to expire at the end of this year.