House Republicans closer to SALT deal after Treasury meeting

Published 25/06/2025, 18:32
© Reuters.

Investing.com -- House Republicans from high-tax states are moving closer to an agreement on the state and local tax (SALT) deduction after meeting with Treasury Secretary Scott Bessent on Wednesday.

Representatives Young Kim of California and Andrew Garbarino of New York reported progress in the negotiations but did not share specific details. These talks are essential for passing President Donald Trump’s multi-trillion dollar tax and spending legislation.

"I’m working diligently so that we have a good product that we can all support," Kim said following the meeting.

The House bill, which narrowly passed by a single vote last month, proposes a $40,000 SALT deduction cap. It would gradually reduce the tax break for individuals earning more than $500,000 in 2025, with both the income limit and cap increasing by 1% annually.

In contrast, the Senate version maintains the current $10,000 cap. Republican leaders hope to pass this version through the Senate by the weekend.

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