SALT-Cap Relief Faces Rollback as Democrats Eye Less Spending
- Biden urged Democrats to lower spending totals to $2 trillion
- Democrats may need to reduce expectations for SALT relief
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Democrats risk settling for a less generous expansion of the state and local tax deduction than previously hoped after President Joe Biden conceded that lawmakers will have to scale back his economic agenda to get it enacted.
Biden, in a closed-door meeting with House Democrats on Friday, said the cost of the tax-and-social-spending package could potentially end up as a range around $2 trillion, down from a previously planned $3.5 trillion top-line figure. That means lawmakers will likely have to decrease the cost of nearly every spending program and tax credit in the legislation, including a planned increase in the state and local tax, or SALT, write-off.