House Republicans on Tuesday evening mulled a compromise that would pair state and local tax relief with a conservative policy priority as a possible solution for an impasse between tax writers, blue-state Republicans and the House Freedom Caucus.
One idea under consideration would be to move a second tax bill in parallel with the $78 billion family and business tax cut deal negotiated by Ways and Means Chairman Jason Smith, R-Mo., and Senate Finance Chair Ron Wyden, D-Ore.
That second bill would pair relief from the $10,000 state and local tax deduction cap with a requirement that parents collecting the child tax credit provide a Social Security number, a source familiar with the negotiations said. The new child credit requirement could offset some of the cost of expanding the current “SALT” limit, helping alleviate concerns of deficit hawks, the source said.
