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.
Recommended Stories
Print subscriber? Click here to login/register your account
Digital subscriber? Click here to login/register your account.