Democrats are short on time to act on a budget package containing much of President Joe Biden’s domestic agenda before November’s midterm elections, which could spell trouble for an issue that’s animated some tight House races before: the cap on deducting state and local taxes.
Democrats campaigning to hold onto House seats in high-tax states where the limit hits harder say voters know they’re the ones defending the deduction.
But the fate of what they can get done before the midterms lies in the 50-50 Senate, where an attempt to pass a major tax and spending package through the budget reconciliation process, which can sidestep a Senate filibuster, is seeing new life after a half-year hiatus.
