House Freedom Caucus members suggest easing the cap on individual state and local tax (SALT) deductions if corporate SALT deductions are restricted. This proposal targets blue-state Republicans aiming to expand SALT benefits for constituents in high-tax states like New York and California.
The plan faces resistance, with GOP lawmakers debating whether to burden businesses with higher taxes to offset personal SALT deductions. Ending unlimited corporate SALT deductions could generate significant revenue, but GOP leaders remain wary of raising taxes on companies.
Speaker Mike Johnson is pushing for a resolution by February to include SALT negotiations in broader budget plans. However, disagreements among Republicans over trade-offs and costs threaten progress on this key tax legislation.
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