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How Republicans May Deal With the State and Local Tax Break Issue

  • Tim Scott says Senate tax bill likely to fully repeal SALT
  • Scott expects debate on modifying mortgage interest deduction
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Trump Prioritizes Preserving Middle Class Tax Break

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The treatment of state and local tax deductions will be the “largest hang up” for Republican efforts to revamp the individual side of the tax code, Senator Tim Scott of South Carolina said Friday.

Scott, a member of the tax-writing Senate Finance Committee, said he expects the panel’s tax bill will repeal the so-called SALT deduction entirely. But the House -- where roughly two dozen Republican members want to preserve the break in some form -- will likely include an income cap on it, “in the $200,000 to $250,000 range,” he said.