New bipartisan SALT caucus adds to Pelosi challenges in passing Biden

Woodland Park CO

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House Speaker Nancy Pelosi's job became more complicated after a bipartisan group of lawmakers united Thursday to demand the reinstatement of the full deduction for state and local taxes paid, a tax break for the wealthy opposed by many Democrats and most Republicans. The group, which is calling itself the SALT caucus, could imperil passage of President Joe Biden’s tax plan by demanding the tax break. The caucus consists of 21 Democrats and nine Republicans and was formed in order to put pressure on Congress to return the provision, which is known as the "SALT" deduction, in full. A $10,000 cap on the SALT deduction, which largely benefits high-income households, was IMPOSED by Republicans as part of former President Donald Trump’s 2017 Tax Cuts and Jobs Act. The caucus, which held a press conference on Thursday, is another thorn in Pelosi’s side because many of those on it have vowed not to vote for Biden’s plan to raise the corporate tax rate (which is how he intends to pay for a $2 trillion spending package) unless the cap is lifted. Pelosi will be forced to bargain with the group, although fully reinstating the SALT provision would present major difficulties. “Restoring the SALT deduction would once again force low- and middle-income people to "subsidize wealthy" individuals in Democrat high-tax states and municipalities,” like CA, NY, etc