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Senate Rejects Democrats’ Effort to Repeal SALT Deduction Rules

  • Republicans oppose measure to remove Treasury regulations
  • Treasury rules prohibit work-arounds for tax deduction cap
The U.S. Capitol Building in Washington.
The U.S. Capitol Building in Washington.Photographer: Al Drago/Bloomberg

The Senate rejected a Democratic proposal that sought to give states leeway to help residents avoid the $10,000 limit on deductions for state and local tax payments.

The 43-52 vote Wednesday is a loss for Democrats who have been trying to chip away at the 2017 Republican tax-cut law that limited the federal deduction for state and local taxes, or SALT, to $10,000. The deduction has been especially valuable to people in high-tax states, including New York, New Jersey and California.