Big Beautiful Bill raises SALT cap for high earners despite GOP resistance
By Ashlea Ebeling | Wall Street Journal
Business owners continue to get the biggest tax benefit
The fight over deductions for state and local taxes almost sunk President Trump’s megabill, which is headed to his desk with a new $40,000 cap on the deductions, up from $10,000.
The megabill also lets some business owners continue to dodge the cap on deductions for state and local taxes, or SALT.
The cap became a point of contention among Republicans, with House representatives from high-tax states such as New York and California arguing for a higher cap. GOP senators, who don’t represent the highest-tax states, had pushed for a lower limit.
The Senate set the $40,000 cap to expire after 2029 while the House would have made it permanent.
What’s changing
The...