WASHINGTON — Democrats’ demands for changes to the tax code are threatening to complicate efforts to pass a slimmed-down budget reconciliation package by the August recess, as warring positions on a deduction for state and local taxes reemerge as a potential roadblock.
A handful of House Democrats from high-tax states — New Jersey and New York — are still demanding that relief from a $10,000 cap on deductions for state and local taxes be included if they are going to vote for the revised budget measure.
But the Senate’s pivotal negotiator, West Virginia Democrat Joe Manchin III, doesn’t appear on board. “SALT has not been in the talks at all, no talks I’ve been in,” Manchin said Wednesday.
