Addressing the media from the Capitol, U.S. Treasury Secretary Scott Bessent announced that he predicts House and Senate Republicans might reach a deal on one of the main issues that has hampered President Donald Trump’s economic legislation.
Bessent said a deal is close to being reached on the state and local tax deduction, or SALT deduction. “Both sides are working through it, and I think that we’ll have a solution in the next 24-48 hours.”
After weeks of stalling, members of the House from high-tax states struck a deal in their chamber’s version of the bill, raising the SALT cap to $40,000 from the current $10,000. Meanwhile, the Senate is sticking with the $10,000 limit, and lawmakers are still working out a compromise.
Members of the House from New York, New Jersey, and California have vowed to oppose the bill unless it includes a $40,000 cap on SALT.
Senator Markwayne Mullin, a Republican from Oklahoma, stated, “I don’t think we’ll ever get to a deal.” The senator mentioned that Senate Republicans are warming up to the $40,000 SALT cap, but the $500,000 income threshold for the deduction is still under negotiation.
On Tuesday, Bessent met with Senate Republicans to encourage them to pass Trump’s economic legislation tax package by their own July 4 deadline.
By CEO NA Editorial Staff
