WASHINGTON – Senate Republicans are likely to tweak a state and local tax deduction that was crucial to President Donald Trump's sweeping tax bill passing the House, setting up a potential showdown with the lower chamber.
It's the first significant change Senate Republicans have signaled they will make to the massive bill, which would extend 2017 income tax cuts, implement new tax cuts for tipped wages and overtime, and put more money toward border security spending.
"Obviously, the House has different equities when it comes to that issue. But we'll work it out," Senate Majority Leader John Thune told reporters after a June 4 meeting at the White House. "We obviously realize that anything we do also has to pass the House of Representatives, it's got be something that the president is willing to sign into law."
At issue is a state and local tax deduction, known as SALT, which benefits the constituents of several Republicans who represent districts in largely Democratic states, such as New York, California, and New Jersey. Those lawmakers pushed for the cap to be raised from $10,000 to $40,000 for people earning less than $500,000 per year in exchange for their support for the GOP legislation.
