The House bill would have raised the SALT cap to $80,000 through 2030, with the cap returning briefly to $10,000 in 2031 before expiring. The Joint Committee on Taxation scored that provision as a revenue raiser, $14.8 billion over 10 years, because the current law $10,000 cap is set to expire in 2025.
After several senators raised concerns about that provision, Sen. Bob Menendez, D-N.J., and Senate Budget Chairman Bernie Sanders, I-Vt., tried to negotiate a compromise setting an income threshold above which SALT deductions would be capped.
They could never agree on the appropriate threshold, with Sanders unwilling to go above $400,000 and Menendez saying it needed to be somewhat higher to protect more of his constituents. Sanders ultimately lost interest in the compromise altogether and the talks fell apart long before the latest Schumer-Manchin negotiations.
Still, Ways and Means Chairman Richard E. Neal, D-Mass., said he’s confident a reconciliation package will get done before the August recess, adding he’s gone “back and forth” with Speaker Nancy Pelosi, D-Calif., about it four or five times over the last few days.
Senate Finance Chair Ron Wyden, D-Ore., also dismissed SALT as an obstacle to getting a bill done.
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