In one of the most long-awaited details, the legislation increases the state and local tax (SALT) deduction cap from $10,000 to $30,000 for single and joint filers — which would phase down as income grows — a figure lower than the proposal floated by key stakeholders.
The SALT deduction cap, which was first instituted in the 2017 Trump tax cuts, has emerged as one of the most contentious debates pertaining to the Trump agenda bill. Moderate Republicans from high-tax blue states — including New York, New Jersey and California — have been pushing to increase the cap, which deficit hawks are opposed to.
The release of the text — which had been highly anticipated since Friday night, when the panel unveiled a partial version of the measure — comes as the committee prepares to debate and advance the measure in a meeting scheduled to begin on Tuesday.
Beyond increasing the SALT deduction cap, the bill includes several tax-related promises Trump made on the campaign trail, including getting rid of taxes on tips and overtime — provisions set to expire at the end of 2028. The bill also proposes exempting car loan interest payments through 2028, with several exceptions.
The bill also makes the 2017 income tax rate reductions permanent, a priority for many Republicans. The 2017 tax law specifies marginal tax rates of 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
The Hill's Mychael Schnell and Tobias Burns has more here.
