House Republicans Split Over SALT Deduction Cap Amid Tax Bill Standoff

House Republicans remain deeply divided over proposals to raise the state and local tax (SALT) deduction cap as part of a broader GOP tax bill tied to President Trump's legislative priorities. Moderate Republicans from high-tax states like New York are demanding a significant increase to the SALT cap, viewing it as a fairness issue for taxpayers in these areas, while fiscal conservatives oppose large increases due to concerns about adding to the federal deficit. The Ways and Means Committee has discussed raising the SALT cap from $10,000 to $30,000, but some moderate Republicans reject this offer as insufficient and are pushing for even higher limits without income caps. Meanwhile, some GOP leaders are considering income caps on the deduction to balance fiscal concerns, but this has caused internal conflict within the SALT caucus, with some members opposing income restrictions as redundant or unfair. The dispute threatens to derail the passage of the so-called "big, beautiful bill," a key element of Trump's agenda, with several Republicans threatening to vote against the entire package if their SALT demands are not met. Overall, the fight over SALT highlights the broader tension within the Republican Party between fiscal hawks and moderates representing high-tax states, complicating efforts to extend the 2017 tax cuts and pass new legislation.