Latest news with #SALT-focused
Politico
10 hours ago
- Business
- Politico
Senate GOP scrambles to rewrite Trump's megabill
Senate Republicans are scrambling to rewrite major parts of their 'big, beautiful bill' in deference to key holdouts and the chamber's parliamentarian as the clock ticks on a self-imposed deadline. GOP leaders are aiming to start voting Thursday, but senators emerged from a closed-door briefing on the status of the megabill Monday night saying that some of their biggest sticking points — ranging from key tax decisions to a deal on Medicaid — remain unresolved. The multitude of unresolved issues has left Republicans unsure when the bill will get to the Senate floor, even as leaders project confidence they are on track to pass it and send it back to the House this week — setting up final passage ahead of their July 4 target. Most crucially, it could be Wednesday night or later before Senate Parliamentarian Elizabeth MacDonough finishes ruling on whether major tax provisions, including some measures at the very heart of the domestic policy bill, pass muster under the budget rules GOP lawmakers want to use to pass their bill on party lines. 'I think we'll eventually pass something, I just can't tell you when,' said Sen. John Kennedy (R-La.). 'We've got a lot of stuff to work out, and the bill will be changed on the floor.' Republicans had initially hoped to have a revised bill ready to be released Monday. Now they aren't expected to release it while the parliamentarian's review — the so-called 'Byrd bath' — is pending, according to two people granted anonymity to discuss internal thinking. Majority Leader John Thune (R-S.D.) said that he hoped to be able to hold an initial vote on Thursday, setting up passage over the weekend, but that 'part of it right now is the Byrd bath, and it's taking a little bit longer.' It's not just the procedural hoops senators have to jump through. Multiple substantive matters need to be settled, including a high-stakes dispute between the House and Senate GOP over a key tax break. Sen. Markwayne Mullin (R-Okla.) briefed his colleagues on talks he's brokering with House Republicans on raising the state-and-local-tax deduction cap, known as SALT. Mullin signaled afterward he thought they were getting close to 'acceptance' on what the final proposal would entail. A $40,000 cap negotiated by the House would not be touched, he suggested, but an income threshold where the deduction starts to phase out could be lowered. But that combination was publicly rejected by SALT-focused House members just days ago, and several GOP senators left the briefing under the impression that Mullin was only laying out potential options and did not have anything resolved. Beyond the tax fight, Republicans are still working through thorny Medicaid issues. Thune told GOP senators during the closed-door meeting that the Senate would follow the House's lead in one key respect — it would not change the share of Medicaid costs the federal government pays for those enrolled under the program's 2010 expansion, according to Missouri Sen. Josh Hawley. GOP leaders also discussed including a fund to help offset the impact to rural hospitals due to other Medicaid changes in the Senate bill. POLITICO reported Monday that the fund is expected to be included in the bill, but Republicans say they have not yet gotten details on how it would work. 'I am absolutely happy with a rural fund; I think that would be great,' Hawley said. 'Will that solve the issue? I don't know.' Senate Republicans included language in their bill to curtail provider taxes, which most states use to fund their Medicaid programs and garner larger federal reimbursements. House GOP leaders, who chose only to freeze those taxes, are increasingly worried that they'll have to spend weeks more negotiating the megabill if the Senate doesn't quickly retreat from some of its proposed changes. Hawley said that he has been talking to House leaders who are warning that the language can't pass their chamber, necessitating a time-consuming 'conference' with the Senate. Speaker Mike Johnson has urged senators to keep their changes to the House-passed bill to a minimum but senators have eyed major changes to the tax package while sanding down some of the proposed spending cuts. At Monday's briefing, Sen. Thom Tillis of North Carolina handed out a paper that estimated how much hospitals in several states, including his and Hawley's, would lose under the Senate provider tax proposal. Republicans are also getting heartburn as MacDonough warns that several key provisions do not comply with the strict rules governing what can be included under reconciliation, which lets them skirt a 60-vote filibuster. For instance, a plan to shift some food-aid costs to states, generating tens of billions of dollars in savings, is in flux after MacDonough ruled over the weekend that the scheme, which penalized states for their payment error rate, did not comply. Senate Agriculture Committee Republicans are hoping they can salvage the plan with relatively small changes. Losing the cost-sharing proposal would be a setback for leadership, which is already facing pushback from House and Senate conservatives who believe the bill doesn't go far enough on cutting spending. Rep. Andy Harris (R-Md.), chair of the hard-right House Freedom Caucus, warned Monday that if the bill 'should pass the Senate in its current rumored form, it probably would have trouble in the House.' MacDonough has also warned that an effort championed by Sen. Mike Lee (R-Utah) to overhaul the federal rulemaking process does not comply with reconciliation rules, but Republicans expect Lee could try to revive it as a floor amendment. Lee and Sens. Rick Scott (R-Fla.) and Ron Johnson (R-Wis.) met separately with Trump on Monday as the president steps up his efforts to win over the trio of outspoken fiscal conservatives. Trump, according to Scott, said that he supports full repeal of clean energy tax credits enacted under predecessor Joe Biden, as well as a focus on waste, fraud and abuse in Medicaid. Senate conservatives later relayed Trump's message Monday evening to a closed-door Freedom Caucus meeting, according to four people granted anonymity to describe the gathering. The centerpiece of the GOP package — its tax and health care language — remains under review with MacDonough. Senate Finance Committee staff met with her Monday to discuss the health provisions and are expected to reconvene on Tuesday to go over the tax language. Final rulings are not expected to be finished until Wednesday at the earliest — less than a day before Thune wants senators to start voting. Meredith Lee Hill and Benjamin Guggenheim contributed to this report.
Yahoo
21-05-2025
- Business
- Yahoo
Johnson, SALT Republicans zero in on critical agreement
Speaker Mike Johnson (R-La.) and moderate Republicans have zeroed in on an agreement for the state and local tax (SALT) deduction cap, three sources told The Hill, solving a critical hang-up that has dogged the party's 'big, beautiful bill.' The proposal would increase the SALT deduction cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income, three of the sources said. One source said the level would increase 1 percent a year over 10 years. That marks an increase from the $30,000 cap with a $400,000 income cap currently in the bill — a provision that SALT Caucus members vehemently rejected. The House Rules Committee is scheduled to convene at 1 a.m. Wednesday, during which the panel will consider changes to the bill. While several members of the SALT Caucus are supportive of the plan, according to sources, Johnson will need to sell the proposal to hardline conservatives — including many in the House Freedom Caucus — who have been resistant to a significant hike to the deduction cap. Exiting a meeting in the Speaker's office Tuesday night, members of the SALT Caucus said they did not yet have a firm deal, but signaled significant progress. 'We weren't even in the same universe a couple of days ago. We're on the same ballfield now,' Rep. Nick LaLota (R-N.Y.) told reporters. Still, the agreement between Johnson and the SALT Caucus is a massive step forward in passing the party's 'big, beautiful bill.' The Speaker and moderate Republicans from high-tax blue states struggled for weeks to find consensus on the critical — yet tedious — issue, trading proposals behind closed doors. Rep. Elise Stefanik (R-N.Y.) — who is considering a run for governor — stepped in to become a more active part of negotiations after unexpectedly withdrawing from her United Nations Ambassador nomination. Sources said that she had told Johnson that he had to move on the $30,000 figure, which she had said was 'insulting' in a joint statement with fellow SALT-focused New Yorker Republican Reps. Mike Lawler, Andrew Garbarino, and LaLota. Stefanik, though, notably did not join a statement with five core SALT Republicans on Tuesday following Trump's visit with House Republicans on Capitol Hill. Trump had told lawmakers earlier on Tuesday to 'let SALT go,' signalling support for the $30,000 cap and telling reporters that it would benefit 'Democrat governors.' He took specific aim at Lawler, one of the most outspoken about making greater changes to the SALT deduction. Lawler held the line in the immediate aftermath of Trump's speech, saying he was 'not budging.' But later in the day, after SALT Caucus meetings in the Speaker's office, Lawler said GOP leaders have floated 'an improved offer' to members of the SALT Caucus, and the lawmakers were waiting for cost estimates to arrive from the Joint Committee on Taxation. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
21-05-2025
- Business
- The Hill
Johnson, SALT Republicans zero in on critical agreement
Speaker Mike Johnson (R-La.) and moderate Republicans have zeroed in on an agreement for the state and local tax (SALT) deduction cap, three sources told The Hill, solving a critical hang-up that has dogged the party's 'big, beautiful bill.' The proposal would increase the SALT deduction cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income, three of the sources said. One source said the level would increase 1 percent a year over 10 years. That marks an increase from the $30,000 cap with a $400,000 income cap currently in the bill — a provision that SALT Caucus members vehemently rejected. The House Rules Committee is scheduled to convene at 1 a.m. Wednesday, during which the panel will consider changes to the bill. While several members of the SALT Caucus are supportive of the plan, according to sources, Johnson will need to sell the proposal to hardline conservatives — including many in the House Freedom Caucus — who have been resistant to a significant hike to the deduction cap. Exiting a meeting in the Speaker's office Tuesday night, members of the SALT Caucus said they did not yet have a firm deal, but signaled significant progress. 'We weren't even in the same universe a couple of days ago. We're on the same ballfield now,' Rep. Nick LaLota (R-N.Y.) told reporters. Still, the agreement between Johnson and the SALT Caucus is a massive step forward in passing the party's 'big, beautiful bill.' The Speaker and moderate Republicans from high-tax blue states struggled for weeks to find consensus on the critical — yet tedious — issue, trading proposals behind closed doors. Rep. Elise Stefanik (R-N.Y.) — who is considering a run for governor — stepped in to become a more active part of negotiations after unexpectedly withdrawing from her United Nations Ambassador nomination. Sources said that she had told Johnson that he had to move on the $30,000 figure, which she had said was 'insulting' in a joint statement with fellow SALT-focused New Yorker Republican Reps. Mike Lawler, Andrew Garbarino, and LaLota. Stefanik, though, notably did not join a statement with five core SALT Republicans on Tuesday following Trump's visit with House Republicans on Capitol Hill. Trump had told lawmakers earlier on Tuesday to 'let SALT go,' signalling support for the $30,000 cap and telling reporters that it would benefit 'Democrat governors.' He took specific aim at Lawler, one of the most outspoken about making greater changes to the SALT deduction. Lawler held the line in the immediate aftermath of Trump's speech, saying he was 'not budging.' But later in the day, after SALT Caucus meetings in the Speaker's office, Lawler said GOP leaders have floated 'an improved offer' to members of the SALT Caucus, and the lawmakers were waiting for cost estimates to arrive from the Joint Committee on Taxation.
NBC News
01-05-2025
- Business
- NBC News
Growing GOP fight over 'SALT' tax deduction complicates Trump agenda bill
WASHINGTON — Republicans are at loggerheads over the fate of a controversial tax deduction that is critical to winning enough votes in the House to pass President Donald Trump's legislative agenda. After a week of meetings and discussions, Republicans still haven't settled on how to handle the state and local tax deduction, also known as 'SALT,' which allows filers to deduct up to $10,000 in taxes paid to state and local governments. Before the House adjourned for the week on Thursday, GOP lawmakers on opposite ends of the spectrum continued to snipe over whether to raise that $10,000 maximum imposed by the 2017 Trump tax cuts. Pro-SALT Republicans insist it's not enough to lift the cap to $15,000 for individuals and $30,000 for married couples. Party leaders are looking at a higher cap, nixing the 'marriage penalty' and potentially an income threshold to limit the deduction to the middle class, according to lawmakers and sources with knowledge of the talks. There is no consensus in the GOP's narrow House majority. It is a sensitive topic after several Republicans in high-tax areas lost their re-election races in 2018 after backing the 2017 tax law that imposed the $10,000 cap. A new crop of GOP lawmakers has since won re-election by promising to raise that cap, but doing so would be expensive and complicate the rest of the bill, which also seeks to boost funding for immigration enforcement and the military, as well as raise the debt limit. SALT is one of many contentious issues in the package, but it is the most unique. Many Republicans — across ideological lines — care little about the deduction and would be content to avoid expanding it. But there is no path to passing a bill without catering to the roughly dozen Republicans in New York, New Jersey and California who have made it a red line. Rep. Nicole Malliotakis, R-N.Y., the only 'SALT Caucus' member who serves on the tax-writing Ways and Means Committee, said she had briefed her fellow committee members Thursday morning about negotiations following a SALT-focused meeting a day earlier with Speaker Mike Johnson, R-La. While there is no deal on numbers yet, Malliotakis said discussions include limiting the SALT deduction to families making less than $400,000 per year. She said the new cap could be boosted to slightly higher than $25,000. 'There is general consensus that we have no interest in supporting millionaires and billionaires, and this needs to be targeted relief for middle class families,' Malliotakis, who represents Staten Island and part of Brooklyn, told reporters. 'That's what this comes down to — what number can provide the most relief for middle class families that is acceptable to other members of the conference.' She said the issue wouldn't be resolved this week, but sounded optimistic that they will ultimately get 'something real approved by the committee.' 'We are going over all of the menu of options,' Malliotakis said, 'and eventually we will get to the right number.' If Trump's tax cuts expire, the SALT cap would reset to infinity, at a cost of $1.2 trillion over a decade, according to the Committee for a Responsible Federal Budget, a Washington research group that advocates for lower deficits. GOP leaders want to contain the price tag of any SALT policy to make room for other priorities. The Ways and Means Committee still hasn't released the text of its bill or scheduled a hearing to vote on sending it to the floor, although House GOP leaders want it to happen next week to stick to their schedule of passing the entire package out of the chamber by Memorial Day. Democrats are guaranteed to attack SALT limits imposed by Republicans as an attempt to raise taxes on residents of blue states, which hold enough swing districts to decide control of the House. 'I don't think there's any magic number where it's not a fertile attack line for Democrats, so at a certain point SALT members just have to take yes for an answer,' said Liam Donovan, a lobbyist and former GOP aide, who said the cap is likely to end up above $10,000 but well short of the $100,000 pro-SALT members appear to want. 'To me, the best way to indemnify yourself politically is to make the number as big as possible but with an income phase-out,' he said. 'Hard to attack Republicans if you can't claim it hurts middle class families. The poster child is ostensibly the cop or firefighter who has a big property tax bill, which is a relatively cheap and easy problem to fix.' Conservative Rep. Chip Roy, R-Texas, said he opposes the SALT deduction and criticized his colleagues for pushing it. 'We shouldn't have such high local taxes and the federal government shouldn't subsidize it. So I'm not all that interested in hearing about my blue-state colleagues complaining about it,' Roy said, while adding that he's only willing to accept a higher SALT cap if it is offset with spending cuts. 'You have to figure out how to get a deal done. So if the math adds up and we're doing enough on the spending restraint side and the tax policy works out and SALT goes up a little, whatever, we'll work it out,' Roy told reporters. 'I just don't support that policy.' Rep. Mike Lawler, R-N.Y., who represents a competitive district outside New York City, is demanding a higher SALT deduction, noting that his state gives more to the federal government than it takes, unlike many red states. 'It's an issue of fairness. For my colleagues that talk about bad blue-state policies, the fact is New York is a donor state. Many of my colleagues from red states actually get more money from the federal government than tax revenue that is sent to the federal government,' Lawler, who is considering a run for governor of New York, told reporters. 'So if we want to talk about subsidies, then we can talk about subsidies, but the fact is that New Yorkers need tax relief. That's what I'm fighting for in this bill.' Lawler's colleague, Rep. Elise Stefanik, R-N.Y., is also weighing a run for governor and has been talking up SALT recently. That could make her another difficult vote for Johnson. Rep. Nick LaLota, R-N.Y., who represents a Long Island district that was hit hard by the 2017 GOP law's SALT cap, said this week that boosting the deduction is essential to winning his support for the reconciliation package. 'I'm all in on the SALT provision,' LaLota told reporters. 'My folks didn't just send me here for my great good looks. They sent me here to fight for SALT, and I intend to win that fight.'
