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House Proposes SALT Deduction Cap Boost to $40K

6/28/2025

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House Proposes SALT Increase

A new House proposal seeks to increase the SALT deduction cap to $40,000 for taxpayers earning $500,000 or less, contrasting sharply with the Senate's $10,000 limit. This contentious debate raises alarms about favoring the wealthy, especially in high-tax states like California, as lawmakers push for tax relief during tough economic times.

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Thune Pushes Tax Bill

Senate Majority Leader John Thune is racing against the clock to push President Trump's tax-budget-and-border bill through before the July 4 deadline. However, hurdles loom as a Senate ruling demands Democratic backing. The contentious SALT deduction has sparked dissent among Republicans, with some vowing to reject the bill, jeopardizing crucial tax cuts and debt ceiling raises.

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House Proposes SALT Increase

A new House proposal seeks to increase the SALT deduction cap to $40,000 for taxpayers earning $500,000 or less, contrasting sharply with the Senate's $10,000 limit. This contentious debate raises alarms about favoring the wealthy, especially in high-tax states like California, as lawmakers push for tax relief during tough economic times.

1 / 2