Skip to content
Subscriber Only

Biden Disappoints SALT Democrats, Setting Up Headache for Pelosi

  • Biden plan didn’t address cap on state and local tax break
  • Democrats pushing end to SALT cap complicate Congress strategy
Video player cover image
Biden to Unveil American Family Plan Funded by Taxing Wealthy

President Joe Biden’s decision, in a raft of individual tax proposals released Wednesday, to leave in place a cap on state and local tax deductions threatens to complicate congressional negotiations over his sweeping new social-spending program.

The omission disappoints a group of Democratic lawmakers pushing to remove the $10,000 cap on state and local tax, or SALT, deductions that went to help pay for a slice of President Donald Trump’s 2017 tax cuts. That’s a particular headache for House Speaker Nancy Pelosi, who has to kick off shepherding the White House’s plan through the razor-thin margins in her chamber.