Debate over SALT deduction changes continues in 2025

Lawmakers are discussing changes to the state and local tax (SALT) deduction as part of President Trump's tax cuts debate. Currently, the SALT deduction is capped at $10,000, a limit set by the 2017 Tax Cuts and Jobs Act. The SALT cap has been contentious, especially for lawmakers from high-tax states like California and New Jersey. The cap is set to expire after 2025 unless Congress takes action. Trump has expressed support for raising the SALT cap. Republicans plan to use a budget process called "reconciliation" to advance tax cuts. Their current budget blueprint proposes $4.5 trillion in tax cuts through 2034, but negotiations may alter this figure. SALT reform is likely to be part of these discussions.