A group of Democrats from high-tax states have demanded that the SALT deduction cap be eased as part of Biden’s spending package, known as the Build Back Better Act, which also includes items such as universal pre-K, an expansion of ObamaCare and clean energy tax credits.Will House Democrats sink Biden’s tax plan?
Several House Democrats promise to sink President Joe Biden’s economic agenda if a scaled-back version now being considered eliminates an expansion of the federal deduction for state and local taxes.How much revenue would Biden's tax plan raise in 2022?
The analysis finds that in tax year 2022, Biden’s significant personal income tax increases would raise $162 billion. But most of that revenue could be lost if Congress amends Biden’s plan to repeal the cap on SALT deductions. Repealing the SALT cap would drain $98 billion of the revenue from Biden’s plan.Will Biden negotiate with House lawmakers on salt Bill?
Asked about the House lawmakers' demand, a Biden White House official said: "We are in touch with a wide range of lawmakers regarding the president’s economic growth plan for the middle class, and weighed in about SALT late last year, but we won’t negotiate in public."