GOP zeros in on shorter timeline to avert SALT meltdown

The House and the White House are negotiating a deal to increase the State and Local Tax (SALT) cap to $40,000, but with a shorter 5-year timeline. This could resolve one of the thorniest issues in President Trump's bill. However, House holdouts and senators still need to agree to the proposal. At least one House holdout, Rep. Nick LaLota, has rejected the offer, demanding a permanent $40,000 cap for his constituents. Other House members, such as Rep. Mike Lawler, are more optimistic after meeting with Treasury officials. Rep. Nicole Malliotakis is inclined to support the deal, despite not loving it. The proposed deal would raise the SALT cap to $40,000 for five years, then revert to the current $10,000 cap, reducing the deficit hit by up to $145 billion. The House SALT caucus, Treasury Secretary Scott Bessent, and other White House officials have been involved in the negotiations. Bessent is expected to discuss the plan with Senate Republicans during a closed-door lunch. The proposal is still being negotiated, and its fate remains uncertain.