SALT Relief May Win Inclusion in Senate Democrats Budget Package

  • Lawmakers from high-tax states pushing for bigger deduction
  • Republicans limited state, local tax deduction in 2017
Photographer: Stefani Reynolds/Bloomberg
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Democrats may include at least a partial expansion of the state and local income tax deduction in the $3.5 trillion budget outline that Senate Democrats agreed upon earlier this week, according to one of the lead senators fighting to restore the full deduction.

The so-called SALT deduction was capped at $10,000 in the Republican tax cut act of 2017, and lawmakers from high-tax states have been battling to include an expansion in the longer-term fiscal packages being debated in Congress this year.