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Yahoo
13-05-2025
- Business
- Yahoo
SALT Republicans, Johnson to meet as impasse hardens
Moderate Republicans from high-tax blue states are scheduled to meet with Speaker Mike Johnson (R-La.) on Tuesday, as the impasse over the state and local tax (SALT) deduction cap hardens. News of the gathering comes shortly after Rep. Mike Lawler (R-N.Y.), one of the most vocal supporters of increasing the SALT deduction cap, said negotiations between the SALT Caucus and leadership had not been happening. The House Ways and Means Committee, which has jurisdiction over taxes, included a $30,000 SALT deduction cap for individuals making less than $400,000 in its portion of the GOP's megabill — triple the current $10,000 cap — which those in the SALT Caucus rejected. The group is pushing for a higher cap: During a meeting Monday with Johnson and Republicans on the House Ways and Means Committee, the group floated a $62,000 cap for single filers and $124,000 for joint filers — a large difference from the proposal in the text. Asked about conversations Tuesday, Johnson said the group was nearing an agreement. 'We're still having discussions, dialogue this afternoon, working on it. And we're very close, I think, to finally resolving it,' Johnson said. Pressed on whether he would increase the proposed SALT deduction cap from its current $30,000 offer, the Speaker was coy. 'I'm not going to give details of the ongoing discussion, but I'm talking to both corners of the conference to try to find the perfect balance, and I think we will,' he said. The debate over the SALT deduction cap has risen as one of the most contentious hangu-ps hindering the GOP's bill full of President Trump's legislative priorities, with centrist lawmakers from high-tax blue states — including New York, New Jersey and California — pushing to increase ot, and hard-line conservatives pushing against such a move because of the ballooning deficit. The House Ways and Means Committee began debating its part of the GOP's 'big, beautiful bill' on Tuesday. Rep. Jason Smith (R-Mo.), the chair of the panel, deferred to Johnson when asked about the status of negotiations over the SALT deduction cap. Live updates: Medicaid, tax hearings get testy; DNC moves toward new Hogg, Kenyatta elections 'This is the House Republican Conference. The Speaker is negotiating every day on numerous policies,' Smith said. 'The issue is, is that if we don't deliver on this, every single American, 207 million taxpayers, will face a 22 percent tax increase.' 'So failure is not an option. There's gonna be bumps along the road throughout this process, but we're gonna get it done and we're gonna get agreement,' he added. 'And the Speaker is in the middle of all kinds of negotiations.' Punchbowl News first reported on Tuesday's meeting. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
13-05-2025
- Business
- The Hill
SALT Republicans, Johnson to meet as impasse hardens
Moderate Republicans from high-tax blue states are scheduled to meet with Speaker Mike Johnson (R-La.) on Tuesday, as the impasse over the state and local tax (SALT) deduction cap hardens. News of the gathering comes shortly after Rep. Mike Lawler (R-N.Y.), one of the most vocal supporters of increasing the SALT deduction cap, said negotiations between the SALT Caucus and leadership had not been happening. The House Ways and Means Committee, which has jurisdiction over taxes, included a $30,000 SALT deduction cap for individuals making less than $400,000 in its portion of the GOP's mega bill — triple the current $10,000 cap — which those in the SALT Caucus rejected. The group is pushing for a higher cap: During a meeting on Monday with Johnson and Republicans on the House Ways and Means Committee, the group floated a $62,000 cap for single filers and $124,000 for joint filers — a large difference from the proposal in the text. Asked about conversations on Tuesday, Johnson said the group was nearing an agreement. 'We're still having discussions, dialogue this afternoon, working on it. And we're very close, I think, to finally resolving it,' Johnson said. Pressed on whether he would increase the proposed SALT deduction cap from its current $30,000 offer, the Speaker was coy. 'I'm not gonna give details of the ongoing discussion, but I'm talking to both corners of the conference to try to find the perfect balance, and I think we will,' he said. The debate over the SALT deduction cap has risen as one of the most contentious hangups hindering the GOP's bill full of President Trump's legislative priorities, with centrist lawmakers from high-tax blue states — including New York, New Jersey and California — pushing to increase the deduction cap, and hardline conservatives pushing against such a move because of the ballooning deficit. The House Ways and Means Committee began debating its part of the GOP's 'big, beautiful bill' on Tuesday. Rep. Jason Smith (R-Mo.), the chair of the panel, deferred to Johnson when asked about the status of negotiations over the SALT deduction cap. 'This is the House Republican Conference. The Speaker is negotiating every day on numerous policies,' Smith said. 'The issue is, is that if we don't deliver on this, every single American, 207 million taxpayers, will face a 22 percent tax increase.' 'So failure is not an option, there's gonna be bumps along the road throughout this process, but we're gonna get it done and we're gonna get agreement,' he added. 'And the Speaker is in the middle of all kinds of negotiations.' Punchbowl News first reported on Tuesday's meeting.
Politico
13-05-2025
- Business
- Politico
‘The bill is dead': New York Republican blasts House GOP's chief tax writer
New York Republican Rep. Nick LaLota said the GOP's tax legislation as currently written is 'dead on arrival' — and accused his party's chief tax writer of acting in 'bad faith' by proceeding with a proposal for a key tax deduction that didn't have sufficient buy-in. 'The bill is dead effectively on the floor,' said LaLota in an interview Monday evening of a sweeping tax package released just hours earlier by leaders of the House Ways and Means Committee, in anticipation of a markup Tuesday afternoon. LaLota and four other blue state Republicans hailing from New York, California and New Jersey have been pushing hard for a big boost to the $10,000 state and local tax deduction as part of the Republican megabill to enact broad swaths of President Donald Trump's domestic agenda. But of policies currently included in the Ways and Means draft bill that would increase the SALT deduction, LaLota accused committee chair Jason Smith (R-Mo.) of acting in 'bad faith in presenting a bill that … doesn't even come close to earning our vote.' A Republican spokesperson for the Ways and Means Committee declined to comment. The open criticism of the chair of a powerful committee from a member of the same party spells big trouble for Speaker Mike Johnson and GOP leaders as they race to put President Donald Trump's 'big beautiful bill' on the House floor next week. Johnson can only lose three Republicans on a party-line vote and still pass the sweeping tax, border and energy legislation. The tax component of that bill released Monday included a tripling of the SALT cap to $30,000 and new income limits for the increased deduction. LaLota and his fellow so-called SALT Republicans think that the proposal is wildly insufficient. LaLota pointed to a joint statement issued by him and three other Republican lawmakers rejecting a $30,000 cap last week, saying he was surprised that the committee chair revealed that the draft bill included that same figure, with a $400,000 income limit. 'The SALT Caucus summarily rejected 30k a few days ago, and yet the chairman presented 30k in the meeting,' said LaLota, adding that the SALT Republicans on the call rebutted the proposal. 'I was disappointed that the committee chairman insulted us with fake numbers and fault conclusions.' For their part, many members of the Ways and Means committee, including Smith, believe that the SALT deduction unfairly subsidizes high-tax states. Smith has also indicated in recent days that he believes it isn't up to him to negotiate with the SALT Republicans but rather House GOP leadership. Johnson did take a more active role following the Monday morning call, according to Republicans granted anonymity to share details of private conversations. At the same time, SALT Republicans are also experiencing fissures among themselves, which have exacerbated in the last 24 hours, mainly between the lawmakers who say they will accept an agreement closer to $30,000 and those who are digging in for a much larger increase. The SALT Republicans have also been split on whether they can tolerate an income cap on which taxpayers can claim the increased deduction. The House Ways and Means Committee plans to open debate on the tax portion of the Trump agenda bill Tuesday afternoon. House GOP leadership hopes to resolve the differences over the SALT deduction after the markup and before the legislation heads to the chamber floor.
Epoch Times
12-05-2025
- Business
- Epoch Times
Republicans Release Sweeping Tax Plan, Key Component of Trump's Agenda
The House Ways and Means Committee, which manages taxes, released the full 389-page text of the long-awaited multi-trillion-dollar Republican tax plan on May 12. The legislation, which President Donald Trump called 'the one big beautiful bill,' proposes lowering taxes by more than $4 trillion and cutting spending by $1.5 trillion over a decade. It would also raise the federal government's borrowing limit to $4 trillion. 'Ways and Means Republicans have spent two years preparing for this moment, and we will deliver for the American people,' committee chair Jason Smith (R-Mo.) said in a statement. 'Pro-family, pro-worker tax provisions are the heart of President Trump's economic agenda.' A key aspect of the broader tax agenda is permanently extending the list of lower income tax rates introduced in the 2017 Tax Cuts and Jobs Act. Although the president and House Speaker Mike Johson (R-La.) suggested tax hikes for wealthy Americans, the text does not increase the individual income tax rate on affluent earners or introduce a so-called millionaire's tax. Instead, the bill would permanently keep the 37 percent top rate for individuals intact. The tax-writing committee's bill would allow unincorporated businesses to deduct up to 22 percent of qualified business income, up from 20 percent. Additionally, the estate and gift tax exemption is increased to $15 million and will be indexed to inflation. Related Stories 5/9/2025 5/8/2025 Senior administration officials, including Treasury Secretary Scott Bessent, have emphasized the importance of making the 2017 tax law permanent. 'The 2017 Tax Cuts and Jobs Act provided a substantial, non-inflationary impetus to the economy, which resulted in real wage gains on a non-inflationary basis for the American people and a robust economy,' Bessent said at a recent congressional hearing. Without extending the Trump-era tax cuts, nearly two-thirds of taxpayers could see higher taxes in 2026, economists say. 'If Congress does nothing, most Americans will face higher taxes, worse incentives for work and investment, and a more complicated tax system starting in 2026,' Tax Foundation economists said in a March 2024 report. Another core component of the bill is temporarily increasing the Child Tax Credit by $500 and increasing the standard deduction by $2,000 for couples to $32,000. If approved, the top-up could take effect this year, allowing U.S. households to receive larger refunds when they file their tax returns next year. In addition, the tax bill features a paid family and medical leave tax credit that helps businesses offer these plans to their employees. Republicans would follow through on Trump's tax pledges, such as eliminating taxes on tips and overtime pay. The bill would also exempt car loan interest payments. These provisions would expire in 2028. One notable omission was the president's vow to eliminate taxes on Social Security benefits. However, Rep. Thomas Massie (R-Ky.) has introduced legislation to exempt senior citizens from taxes on Social Security payments. The GOP tax bill does seek tax relief for seniors, as older Americans could receive $4,000 in 'enhanced deductions.' The legislation also creates Money Account for Growth and Advancement (MAGA) accounts, tax-preferred savings vehicles. The pilot program will begin with $1,000. Republican lawmakers also aim to bolster university endowment taxes by as much as 21 percent. Education Secretary Linda McMahon recently targeted Harvard's $53 billion endowment, stating that the university 'receives billions of dollars of taxpayer largess each year.' 'If Harvard prefers not to change, then Harvard should have no problem using its overflowing endowment to fund its bloated bureaucracy,' McMahon wrote. While last week's 28-page partial tax details omitted the state and local tax (SALT) deduction issue, the full text shows the cap increasing from $10,000 to $30,000 for couples earning under $400,000. This has been a thorny issue for moderate Republicans in states like California and New York and conservative GOP lawmakers. The Ways and Means Committee is scheduled to markup the bill on May 13. Staying in Suspense In an interview with Bloomberg's 'Surveillance' program on May 12, the Treasury secretary stated that the tax bill process has exceeded his expectations. 'The tax bill is moving along very well, better than I could have imagined,' Bessent said. The president's economic agenda—trade, tax, and regulation—should be completed by the end of the year, he added. Because Republicans control both chambers of Congress and the White House, lawmakers can pass the president's package without Democratic support through 'reconciliation.' This measure bypasses the Senate filibuster by obtaining a simple majority vote. However, the legislation could encounter several roadblocks, including Republican lawmakers advocating for a more fiscally conservative bill. At a May 9 press briefing, White House press secretary Karoline Leavitt said the reconciliation bill would highlight the president's priorities. 'Anyone who opposes this bill will be opposing the largest tax cut in American history,' Leavitt said. Budget Surplus in April The tax plan comes after the federal government registered a $258 billion budget surplus in April, up 23 percent from the same time a year ago. According to the Federal outlays rose about 5 percent, while tax receipts surged approximately 10 percent. The largest spending items were Social Security ($132 billion), net interest ($89 billion), Medicare ($82 billion), and health ($76 billion). Last week, Bessent said in a letter to Congress that the Treasury Department's extraordinary measures would be exhausted in August, in line with recent estimates of an August or September exhaustion date.
Epoch Times
09-05-2025
- Business
- Epoch Times
Crypto Bill Stalls in Senate as Democrats Withdraw Support
WASHINGTON—The U.S. Senate on May 8 failed to advance a bill that would regulate 'stablecoins' in the cryptocurrency market, dealing a blow to a bipartisan effort backed widely by the industry. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, sponsored by Sen. Bill Hagerty (R-Tenn.), was intended to bring about a system of regulations for the market of stablecoins, which are digital tokens whose value is pegged to another asset (e.g., the U.S. dollar, bonds, or securities). Stablecoins are attractive to larger and more risk-averse investors—for example, pension funds, sovereign wealth funds, asset managers, and wealthy family offices—who want to invest in cryptocurrency without the risks of value fluctuation. The bill would require permits for issuing stablecoins, prevent 'rehypothecation' of stablecoins by lenders, and delineate the boundaries between state and federal regulators, among other rules. After it was introduced, the GENIUS Act had several Democratic supporters and co-sponsors, indicating that it may receive the requisite 60 votes on cloture to avoid a filibuster and advance to final passage. However, on May 3, several Democratic senators led by Sen. Ruben Gallego (D-Ariz.) announced they were withdrawing support from the bill unless changes were made to address their concerns over what they called deficiencies in the bill's security provisions. They did not specify the deficiencies, but demanded 'stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don't meet the act's requirements.' The cloture motion considered on May 8 failed in a 48–49 vote. 'A 'no' vote today is a vote against crypto and against innovation,' Hagerty said in a All Republicans voted in favor of the bill except Sens. Rand Paul (R-Ky.) and Josh Hawley (R-Mo.). Senate Majority Leader John Thune (R-S.D.) voted 'nay' only for the purpose of offering a 'motion to reconsider' the bill at a later date, as he supports the bill. No Democratic senator voted in favor of the bill, not even Sen. Kirsten Gillibrand (D-N.Y.), who co-sponsored it with Hagerty and three other senators. Related Stories 5/5/2025 4/11/2025 The bill's rejection comes at a moment when President Donald Trump's family has launched a stablecoin venture. The company World Liberty Financial—run by Donald Trump Jr. and Eric Trump, the president's two eldest sons—in March created a stablecoin named 'USD1,' which is pegged to the U.S. dollar and U.S. Treasury bonds, among other assets. USD1 presently has a Senate Democratic holdouts had been expecting revised text of the bill, which may have satisfied their concerns as expressed by Gallego and the signatories, until shortly before the vote. Democratic senators cited this reason, as well as the Trump family's involvement in the stablecoin market, as the reasons for voting against cloture. 'It is absolutely absurd that Republicans are forcing a vote today on a stablecoin bill that we have not even had an opportunity to read yet,' Sen. Cory Booker (D-N.J.) 'The Senate should not vote for any stablecoin legislation that allows Trump to continue this corruption,' Sen. Chris Murphy (D-Conn.) It remains to be seen whether the bill will be reconsidered. Hagerty's office did not immediately respond to a request for comment.
