The House Ways and Means Committee is exploring a plan to raise the state and local tax (SALT) deduction limits for single and joint filers earning less than $400,000 annually. This comes despite significant opposition from key lawmakers just last week.
Four sources revealed that this concept was brought up during a meeting on Monday morning, attended by Mike Johnson (R-LA), a member of both the Salt Caucus and the Ways and Means Committee.
According to two sources, there was discussion that this proposal could appear in the section of a bill filled with President Trump’s legislative priorities, which is scheduled for announcement later on Monday.
However, lawmakers have the opportunity to modify the text before the afternoon release, and discussions may lead to changes.
Post-meeting, Johnson indicated there was still no finalized agreement due to ongoing issues, but that there was a shared understanding regarding a new SALT deduction cap before markup and other measures took shape.
“We talked about a lot of numbers. There aren’t any concrete figures yet. That’s the situation. We hope to resolve this today,” Johnson stated to the press. “The discussion among members of the Salt Caucus and the Ways and Means Committee was thoughtful and productive.”
“We’re considering a few options right now,” he added. “So, stay tuned.”
A source mentioned that members of the Salt Caucus were satisfied with a proposed cap of $62,000 for single filers and $124,000 for joint filers, with the latter being indexed for inflation from 2025.
Support for these figures has been voiced by four representatives from Cole’s Salt Caucus: Nick LaLota (RN.Y.), Young Kim (R-Calif.), Thomas Keene Jr. (RN.J.), and Microler (RN.Y.).
The idea of proceeding with a proposed $30,000 SALT deduction cap—three times the current $10,000 cap—has faced backlash from members of the Salt Caucus, some of whom termed the idea a non-starter last week.
Members of the House Ways and Means Committee suggested raising the cap to $30,000, but when this information leaked, it drew strong condemnation from Salt Caucus members.
“We negotiated for SALT in good faith from the beginning. We are advocating for the taxpayers we represent in New York. But, without prior notice or agreement, the speaker and the House Ways and Means Committee have unilaterally proposed a flat $30,000 SALT cap,” Stefanik (RN.Y.) stated.
Co-chairs of the Salt Caucus, Galvalino and Kim, released another statement calling the $30,000 figure “an affront to the hardworking taxpayers we serve and the broader agenda of House Republicans.”
This ongoing debate over the SALT deduction limit has divided the party for years, with moderate Republicans from states like New York, New Jersey, and California advocating for an increase—originally established under Trump’s tax cuts in 2017—while hard-line conservatives express concerns over excessive spending.
The House Ways and Means Committee has released partial texts from the GOP’s Mega bill, underscoring the deep-seated disagreements. Members of the Salt Caucus have made it clear they will not yield to calls for significant relief for their constituents. House Ways and Means Committee Chairman Jason Smith (R-Mo.) shared a post on X of white smoke rising from the House Office Building, commenting, “There’s no salt. No deals. It’s true.”
