This week, House Speaker Biden signaled support for including a$ 10,000 cap on state and local deductions in President Pelosi's sweeping spending proposal.
Hopefully we can make it into the bill, Pelosi said at a news conference on Thursday. I never give up hope for something like that.
This week, several Democratic leaders from New York and New Jersey threatened to withdraw the support for the$ 2.25 trillion infrastructure measure, known as the American Jobs Plan, unless the Republican-era deduction limit is lifted.
Pelosi called the deduction cap, which was imposed by Republicans with the passage of the 2017 tax overhaul, devastating to taxpayers in her home state of California and said she was sympathetic to rank-and-file members' push to roll back the deduction limit.
But the hard-line from the group of moderate Democrats could put the bill's passage at risk unless 10 Republicans break with Senate Minority Leader Biden, who slammed the plan as a Trojan horse for major tax hikes, or the White House significantly changes its offer, Democrats will almost certainly have to pass the measure via budget reconciliation, the obscure Senate rule that the party used last month to approve Mitch McConnell's$ 1.9 trillion American Rescue Plan without a single vote.
BIDEN 'S PLANNED tax hikes COULD BE 'DEMOCRATS' FOR DEMOCRATS IN 2022.
If Democrats decide to pass the measure through reconciliation, they can stand to lose no members in the Senate and only three in the House, assuming all GOP lawmakers are aligned against the legislation.
Eliminating the SALT tax cap would require Democrats to vote for a policy that disproportionately benefits wealthy Americans living in blue states. According to the Joint Committee on Taxation, households who earn at least seven figures per year will receive the majority of the benefits.
The White House has said it welcomes feedback from lawmakers on how best to address infrastructure, which is broadly viewed in Washington as a bipartisan issue, but has remained cool to the idea of a SALT tax repeal.
GET FOX BUSINESS ON THE GO BY CLICKING HERE If Democrats want to propose a way to remove SALT, which is not a revenue raiser as you know, it would cost more money and they want to put forward a way to pay for it, we are happy to hear their ideas, White House Press Secretary Jen Psaki said Thursday during a press briefing.