Key Facts
• June 27: Trump urged Congress to pass his $3.9 trillion tax bill quickly.
• Trump set a July 4 deadline, reversing his earlier flexible stance.
• The bill includes changes to the State and Local Tax (SALT) deduction.
• Republicans reached a tentative agreement to raise the SALT deduction cap to $40,000.
• The new cap would apply for five years, per Senator Hoeven.
• House Republicans proposed a 10-year $40,000 SALT cap, while the Senate initially kept it at $10,000.
• High-tax state representatives, including those from New York and California, pushed for the higher cap.
• Senate plans to begin voting on the bill around noon on June 28.
Summary
On June 27, former President Donald Trump intensified pressure on Congress to approve his $3.9 trillion tax and spending bill by July 4, reversing his earlier flexibility on the timeline. The bill includes significant changes to the State and Local Tax (SALT) deduction, a key point of contention. Republicans reached a tentative agreement to raise the SALT deduction cap from $10,000 to $40,000 for five years. However, House Republicans had proposed a 10-year application of the higher cap, while the Senate initially maintained the $10,000 limit. Representatives from high-tax states like New York and California advocated for the higher cap. The Senate is set to begin voting on the bill on June 28.
