Senate Revises Tax Bill, Lowers SALT Cap Sparks House GOP Opposition

The Senate Finance Committee released its version of President Trump's "Big Beautiful Bill," featuring significant departures from the House's version, especially concerning the state and local tax (SALT) deduction cap. While the House had negotiated a $40,000 SALT cap, the Senate reinstated the $10,000 cap, sparking fierce opposition from the House SALT Caucus and many Republicans who view the Senate's proposal as unacceptable and potentially fatal to the bill's passage. The Senate also made controversial changes to green energy tax credits by expanding rather than cutting Biden-era subsidies, which drew criticism from conservative House Freedom Caucus members demanding deeper spending cuts. These disagreements have led to dwindling Republican support and threaten the bill's narrow margin for passage in the House. Additionally, Senate hardline conservatives express concern over the bill's projected $2.4-3.1 trillion deficit increase, demanding more substantial entitlement cuts, which conflicts with President Trump's promises. The Senate's revisions complicate the timeline for the bill's approval, potentially delaying President Trump's goal to sign it by the 4th of July.