BGOV OnPoint: Democrats Divided Over Push to Repeal SALT Cap

A group of congressional Democrats and some Republicans are pushing to lift the $10,000 cap on the deduction for state and local taxes as negotiations begin on President Joe Biden’s infrastructure and economic plans.

Districts where taxpayers lost the largest deductions — such as in California and New York — are largely represented by Democrats, who are at odds over the full restoration of the SALT write-off. Some say it would disproportionately benefit the wealthy, while others say the cap — enacted in Republicans’ 2017 tax overhaul — unfairly targeted their constituents. Republicans are also generally opposed to lifting the ...