Whether to repeal the SALT cap has become the crux of negotiations between Democrats and Republicans trying to hash out an infrastructure package.

CBS News with details:

The state and local tax deduction cap — commonly known as SALT —  was enacted as part of President Donald Trump’s 2017 tax reforms. Taxpayers can deduct up to $10,000 of the state and local taxes they have paid on their federal income tax return. For married couples filing separately, it’s a $5,000 cap. Previously, they could deduct the full amount.

Tax experts say removing the cap would largely benefit wealthier Americans, but the people affected by it predominantly live in blue states. Some House Democrats have already said point-blank there would be “no deal” if the infrastructure package did not include repealing of the cap as part of the legislation.


The White House has indicated it is open to repealing the SALT deduction cap but lawmakers would have to come up with a way to offset the increased loss in revenue.