HILL TAX BRIEFING: SALT Relief at Risk in Smaller Economic Plan

Democrats may need to rethink how they will handle the federal deduction limit on state and local tax payments after President Joe Biden said lawmakers will need to downsize tax-and-spend legislation to appease party moderates.

While the budget framework Democrats agreed to over the summer allows for an economic plan of up to $3.5 trillion, some lawmakers, including Sen. Joe Manchin (D-W.Va.), have balked at the idea of spending that much. The legislation is expected to include spending on climate change, health care, and other priorities, as well as an overhaul of the tax code focused on corporations and ...