SALT Fight Threatens Biden Bill as Democrats Demand Higher Cap

Several House Democrats promise to sink President Joe Biden’s economic agenda if a scaled-back version now being considered eliminates an expansion of the federal deduction for state and local taxes.

Their demands, critical in a chamber where Democrats can afford only four defections, add to the long list of hurdles the party must clear as lawmakers rewrite Biden’s centerpiece legislation to push it through the evenly divided Senate.

Representative Tom Suozzi, a New York Democrat who has led efforts to expand the tax break, said Wednesday that a group of House Democrats is keeping the “No SALT, ...