A bid by Republicans from New York, New Jersey and California to temporarily double a $10,000 cap on state and local tax (SALT) deductions for most married couples went down to defeat in the House. The limit was put in place as part of the sweeping tax cuts that a Republican-led Congress passed during then-President Donald Trump’s administration. The SALT Marriage Penalty Elimination Act would have lifted the cap from $10,000 to $20,000 for married couples for the current tax year. The cap would drop back to $10,000 next year. Under current law, it’s set to expire after the 2025 tax year. Analysts say that eliminating the cap, or even just doubling it for married couples filing jointly, would deprive the federal treasury of revenues and increase federal deficits. They also said the adjustment would primarily benefit higher-income households.
