HILL TAX BRIEFING: SALT Caucus Falls in Line Ahead of House Vote

For more than a year, a coalition of Democratic lawmakers from New York, New Jersey, and other high-tax states held firm: They wouldn’t back a budget reconciliation deal unless the package eased the $10,000 cap on state and local tax deductions.

The “No SALT, No Deal” threat loomed as a potential complication behind months of negotiations between Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.). While Manchin’s support was necessary to get a tax, climate, and health care package through the evenly divided Senate, Democrats couldn’t afford many defections in the House thanks to a slim majority. ...