As Republicans move closer to passing their $4 trillion tax bill, one provision is proving to be an outsize obstacle: The state and local tax deduction known as SALT. The deduction allows those who itemize when filing their federal taxes to deduct property, sales, or income taxes already paid to state and local governments. It was capped at $10,000 for both individuals and married couples under Trump's 2017 tax bill, much to the chagrin of Republican politicians in pricey enclaves of liberal states like New Jersey, New York, and California where taxes are high.
Before 2017, SALT was uncapped and, like other provisions from the 2017 Tax Cuts and Jobs Act, the current cap sunsets after this year, unless Congress acts.
