Manchin Spurns SALT-Cap Expansion in Economic Agenda Bill (2)

Senator Joe Manchin, the West Virginia Democrat at the center of negotiations over an economic-policy bill, said he opposes changes to the state and local tax deduction, dealing a blow to House Democrats seeking to expand the writeoff.

“Our tax code should not favor red-state or blue-state elites with loopholes like SALT,” Manchin said in a statement Wednesday using the acronym for the tax break. A deal later announced between Manchin and Senate Majority Leader Chuck Schumer on a fiscal package that spans tax, climate and health care measures also omitted any SALT-cap expansion.

Excluding an increase of the ...