The Republican Party is working on passing a significant tax and spending bill before Memorial Day, which includes many of President Donald Trump’s legislative priorities. However, there has been a struggle to bring the bill to the House floor for a vote, largely due to a tax provision called SALT (state and local tax deduction).
SALT allows Americans to deduct up to $10,000 in state and local taxes from their federal taxes. This provision has caused controversy, especially among wealthy earners in high-tax states like California and New York. The cap on SALT deductions has been a point of contention, with pressure from constituents in these states for changes.
House Republican lawmakers are currently crafting a spending and tax bill, with some pushing for changes to the SALT cap. This has created a time crunch as GOP leaders aim to pass the bill to the Senate by Memorial Day. The narrow margins in the House mean that a small group of lawmakers opposing the bill can have significant influence.
Despite ongoing negotiations, a deal has been reached to raise the SALT cap. This has triggered further demands from other groups of lawmakers, leading to a scramble by the White House to maintain unity. The battle over SALT reflects the challenges of legislating in a divided Republican caucus and a divided America, showcasing the complexities within the party.