Trump Pressures Congress on Tax Bill After Tentative SALT Deal

President Trump is pushing Congress to pass his comprehensive tax and spending package before the July 4 holiday, focusing on resolving the contentious state and local tax (SALT) deduction issue. A tentative deal among Senate Republicans proposes raising the SALT cap from $10,000 to $40,000 annually for five years, followed by a reversion to the $10,000 limit, aiming to satisfy lawmakers from high-tax states who have threatened to block the bill otherwise. The compromise also includes phasing out the deduction for taxpayers earning $500,000 or more and dropping proposed restrictions on pass-through business deductions. Treasury Secretary Scott Bessent and House Speaker Mike Johnson have been actively involved in negotiations, signaling progress toward finalizing the SALT provisions. While some House Republicans remain unconvinced by the temporary nature of the cap increase, leadership is optimistic about securing enough votes to advance the bill. The Senate plans to begin voting as early as Saturday, underscoring the urgency to finalize the package rapidly.