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SALT-Cap Expansion Has Nowhere to Go as Biden Agenda Stalled

  • State and local tax break was poised to be widened in bill
  • SALT-cap move unlikely to pass in standalone legislation
Booming U.S. Recovery Is Leaving Some Communities Completely Behind
Photographer: Gabriela Bhaskar/Bloomberg
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Democrats have limited legislative paths to expand the federal deduction for state and local taxes if President Joe Biden’s economic agenda remains stalled indefinitely because of Senator Joe Manchin’s opposition.

A vocal group of Democrats, largely representing high-tax areas in New York, New Jersey and California, have made the state and local tax -- or SALT -- write-off a must-include provision of the roughly $2 trillion tax and spending bill.