Senate Republican Tax Bill Passes ‘SALT’ Deduction Cap of $40,000. Here’s Who Benefits
- The U.S. Senate passed President Trump's tax and spending bill on July 1, 2025, expanding the SALT deduction cap to $40,000 starting in 2025.
- This expansion follows the 2017 Tax Cuts and Jobs Act, which set a $10,000 SALT cap through 2025, and the increase will phase out for taxpayers earning over $500,000.
- The bill includes a special loophole allowing high-income private business owners to bypass the SALT cap, primarily benefiting wealthier taxpayers in high-tax states.
- Rep. Mike Lawler called the deal a "big win" providing significant SALT relief, while critics warned it will increase deficits, harm economic growth, and mortgage the future.
- The Senate bill now awaits House approval before final reconciliation, with the SALT caucus threatening to oppose any reduction of the $40,000 cap.
21 Articles
21 Articles


SALT caucus likely to keep gains despite leaving sour taste in Freedom Caucus mouths
A group of blue-state Republicans is likely to obtain a significant increase in the SALT cap as they were able to negotiate with leadership during reconciliation, despite continued grumbling by the House Freedom Caucus. One of the dominant points of…
SALT caucus likely to keep gains in revised big beautiful bill
A group of blue-state Republicans is likely to obtain a significant increase in the SALT cap as they were able to negotiate with leadership during reconciliation, despite continued grumbling by the House Freedom Caucus. One of the dominant points of contention as the House worked to pass its version of the One Big Beautiful Bill Act in May was how high to raise the cap on state and local tax deductions. After even more negotiations with the Sena…
The SALT Caucus, Fortunately, Comes Up Short
Download national and state-by-state data The endlessly debated cap on deductions for state and local taxes (SALT) has emerged in the GOP megabill largely unscathed—despite the efforts of Republican lawmakers from “blue” states. Those lawmakers are correct that the cap reduces the bill’s tax cuts for their wealthy constituents more than for those in other states. The megabill, however, is so loaded up with other provisions benefiting the rich th…
Once again, Beth Davidson has no idea what’s going on.
Clueless Democrat Beth Davidson (once again) has no idea what’s going on. Davidson – after giving conflicting numbers on what she believed the SALT cap limit should be increased to – told POLITICO she “didn’t actually realize” the SALT cap was expiring this year. And remember, not long ago Davidson falsely claimed (multiple times) that Republican Rep. Mike Lawler […]
Coverage Details
Bias Distribution
- 46% of the sources are Center
To view factuality data please Upgrade to Premium