One of the largest conflicts between home and senate republicans in the tax cuts for the rich account is the deduction of Salt (State and Local Tax). The salt deduction level is of vital importance for the bill for moderate Republicans in North Blue States. A decrease in deduction is a tax increase for residents who are confronted with high local and national tax burden.
The tax reduction account was hardly accepted at the house after the speaker had to negotiate Mike Johnson with moderate Republican members to get their agreement on a limit of salt allowance of $ 40,000.
When the Senate Republicans started to make noise about wanting to lower the deduction, speaker Johnson warned them not to do it, and the Moderate Republicans said that if the deduction is lowered, they will kill the last bill.
Senate Republicans have reduced the deduction to $ 10,000.
Jake Sherman from Punchbowl News posted on X:
Senate finances places $ 10k salt cap in their account. They see it as a negotiation mark.
Rep. Mike Lawler (R-NY), one of the Salt Caucus Republicans, responded to Sherman:
Consider this as the reaction to the “negotiation mark” of the Senate: Death on arrival.
A group of home republicans can blow up the tax cuts for the rich account, and they are on their way to a confrontation with the Senate.
Senate republicans take this step, because salt is not a problem for them. The vast majority of the Senate Republicans come from rural states, smaller states or non-north grilles.
If the Senate Republicans send this bill back to the house, it would not be surprising to see it rejected, and the two parties end up in the conference and they have to negotiate a final account with each other.
The moderate house republicans know that if they maintain it, they can get a better deal by working with Democrats on legislation before the end of the year. The pressure is on Johnson and Thune because the debt limit expires at the end of the summer and the Trump tax reductions at the end of the year.
Trump originally wanted to sign this bill by July 4, but the whole thing is much closer to the collapse than ever becoming the law.
What do you think of Republicans who are not assigned? Share your thoughts in the comments below.
