House GOP Tax Bill Advances Despite Challenges

The House’s ambitious tax bill moved forward in the Road and Means Committee on a party-line vote Wednesday morning after an overnight session that stretched for 18 hours. While this marks a win for House Republicans, they are facing new hurdles following tough negotiations with the Salt Caucus.

The Salt Caucus is primarily advocating for the lifting of federal limits on state and local tax deductions. The current deduction cap, set at $10,000 by the Tax Cuts and Jobs Act in 2017, may increase to $30,000 under the GOP’s proposal, which seeks to align with several commitments made during Donald Trump’s campaign. However, there are no additional taxes mentioned in this context.

New York Republican Rep. Nicole Malliotakis, notably the only Salt Caucus member on the committee, expressed support for the bill, stating it could significantly reduce tax burdens for individuals and families, bringing them closer to relief.

However, tensions remain high among Salt Caucus members. Speaker Mike Johnson (R-La.) attempted to broker a deal during a late-night meeting, but discussions became contentious, leading to Malliotakis being excluded from the meeting despite her critical role in tax policy.

“While they may choose to negotiate among themselves, no changes will come unless I and the committee are in agreement,” Malliotakis emphasized.

Johnson had hoped to strike a deal that night but remarked later that discussions would continue over the weekend. In response to the proposed $30,000 cap for individuals earning under $400,000, Rep. Mike Lawler expressed concerns, calling it “insufficient” and indicating he would not support the bill in its current form.