House Republicans unveil sweeping tax plan but have yet to resolve key fight over SALT

WASHINGTON — House Republicans on Monday unveiled the legislative text of their sweeping tax proposal for the massive bill for President Donald Trump’s agenda, but punted a fight on a nagging sticking point: how much to lift the cap on the deduction for state and local taxes, known as SALT.

Speaker Mike Johnson, R-La., convened a video call Monday morning with members of both the tax-writing Ways and Means Committee and the SALT Caucus, a group of blue-state Republicans who have been fighting to raise the SALT cap much higher than the current level of $10,000. While several proposals were discussed, GOP lawmakers were unable to agree on a number.

During an all-member GOP conference call in the afternoon, Rep. Jason Smith, R-Mo., the chair of the Ways and Means Committee, told colleagues that the final SALT number was still a work in progress, according to two lawmakers on the call.

The legislative text currently calls for the SALT deduction cap to be hiked to $30,000, and applies only to those who make up $400,000 a year. But SALT Caucus members —  including Reps. Nick LaLota, R-N.Y., Elise Stefanik, R-N.Y., and Young Kim, R-Calif. — have said that number is a non-starter. 

One House Republican close to the process told NBC News there would be enough GOP votes to sink the bill if that SALT figure remains in the final product. Republicans can afford just three defections for the final package once it reaches the House floor.

But Smith is pressing forward with a markup in his committee beginning Tuesday afternoon, leaving Johnson with the difficult task of striking a deal on SALT before a final floor vote, which he is aiming to hold next week.

The prickly tax issue has created some tension between Johnson and Smith. During the morning video meeting, Smith told his colleagues it wasn’t his job to negotiate with the SALT Caucus Republicans, but the speaker’s job, according to two sources on the call.

Smith explained that his bill reflects the will of his committee, not of the SALT Caucus, the sources said. The speaker, the sources said, didn’t directly commit to arbitrate the issue.

Johnson’s office did not respond to a request for comment.

During the video call with Johnson, pro-SALT Republicans said they supported a figure floated last week by Kim: a $62,000 cap for individual tax filers and a $124,000 cap for joint filers, one source on the call said. But it’s unclear whether all pro-SALT Republicans, who have had mixed ideas on how to solve the issue, are equally committed to that figure.

The broader plan released by the Ways and Means Committee Monday incorporates some of Trump’s other campaign promises, including eliminating federal taxes on tips and overtime through 2028.