SALT’s Absence in Manchin, Schumer Talks Signals New Hurdles (1)

The state and local tax deduction issue threatens to spark a showdown among Democrats as high-stakes Senate talks inch closer to a deal on President Joe Biden’s economic agenda.

Majority Leader Chuck Schumer and Senator Joe Manchin are negotiating a slimmed-down tax and spending plan. But Manchin says the federal deduction popular in high-tax states like New York, New Jersey and California, known as SALT, hasn’t been in the mix.

“SALT’s not been in the talks at all -- in the talks I’ve been in,” Manchin, a West Virginia Democrat, told reporters Wednesday.

Failing to include a SALT-break expansion ...