task0778
Diamond Member
Senate Democrats say a proposal to raise the cap on state and local tax (SALT) deductions, a top priority of Senate Majority Leader Charles Schumer (D-N.Y.), is likely to be cut from the revised Build Back Better Act.
Senate Democrats who were involved in negotiations over the bill before Sen. Joe Manchin (D-W.Va.) blew it up last month say there’s simply not enough room for the expensive tax change, which Republicans argue would benefit wealthy suburban households in blue states.
“Yeah, I think that’s dead,” said one Democratic senator, who requested anonymity to summarize early discussions about changing the bill to win Manchin’s support.
A second Democratic senator familiar with negotiations on the tax provisions of the legislation said Manchin has signaled to colleagues that he’s not a fan of changing the tax break.
“He doesn’t like the SALT” fix, said the second lawmaker.
It’s a blow for Schumer, who is up for reelection this year and pledged in 2020 to make repeal of the cap on SALT deductions a top priority if Democrats won control of the Senate.
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Pulling the SALT fix out of the legislation also will make it tougher to pass the legislation through the House, where last week three Democrats from New York and New Jersey insisted they won’t support any bill that doesn’t raise the $10,000 cap former President Trump imposed on SALT deductions in 2017.
“SALT remains a top priority. We support the President’s agenda, and if there are any efforts that include a change in the tax code, then a SALT fix must be part of it. No SALT, no deal,” said Reps. Josh Gottheimer (D-N.J.), Tom Suozzi (D-N.Y.) and Mikie Sherrill (D-N.J.) in a joint statement.
thehill.com
Interesting to see if the House dems tank the BBB over this. I kinda doubt it, if they don't pass whatever the final bill is, then they're in really big trouble in the mid-terms. But raising the SALT limit is a de facto tax cut for the rich, which is obviously a big deal for the democrats who want to tax the rich. Which is all of them.
However, that SALT deduction limit ($10,000) expires after 2025.
Senate Democrats who were involved in negotiations over the bill before Sen. Joe Manchin (D-W.Va.) blew it up last month say there’s simply not enough room for the expensive tax change, which Republicans argue would benefit wealthy suburban households in blue states.
“Yeah, I think that’s dead,” said one Democratic senator, who requested anonymity to summarize early discussions about changing the bill to win Manchin’s support.
A second Democratic senator familiar with negotiations on the tax provisions of the legislation said Manchin has signaled to colleagues that he’s not a fan of changing the tax break.
“He doesn’t like the SALT” fix, said the second lawmaker.
It’s a blow for Schumer, who is up for reelection this year and pledged in 2020 to make repeal of the cap on SALT deductions a top priority if Democrats won control of the Senate.
.
.
BUT:
Pulling the SALT fix out of the legislation also will make it tougher to pass the legislation through the House, where last week three Democrats from New York and New Jersey insisted they won’t support any bill that doesn’t raise the $10,000 cap former President Trump imposed on SALT deductions in 2017.
“SALT remains a top priority. We support the President’s agenda, and if there are any efforts that include a change in the tax code, then a SALT fix must be part of it. No SALT, no deal,” said Reps. Josh Gottheimer (D-N.J.), Tom Suozzi (D-N.Y.) and Mikie Sherrill (D-N.J.) in a joint statement.
SALT change likely to be cut from bill, say Senate Democrats
Senate Democrats say a proposal to raise the cap on state and local tax (SALT) deductions, a top priority of Senate Majority Leader Charles Schumer (D-N.Y.), is likely to be cut from the revised Build Back Better Act.
Interesting to see if the House dems tank the BBB over this. I kinda doubt it, if they don't pass whatever the final bill is, then they're in really big trouble in the mid-terms. But raising the SALT limit is a de facto tax cut for the rich, which is obviously a big deal for the democrats who want to tax the rich. Which is all of them.
However, that SALT deduction limit ($10,000) expires after 2025.
