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SALT’s Absence in Manchin, Schumer Talks Signals New Hurdles

  • Manchin says state, tax break not part of economic bill talks
  • Some House Democrats threaten to block bill if no SALT rise
Majority Leader Chuck Schumer, right, talks to Senator Joe Manchin in March, 2022.

Majority Leader Chuck Schumer, right, talks to Senator Joe Manchin in March, 2022.

Photographer: Chip Somodevilla/Getty Images

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The state and local tax deduction issue threatens to spark a showdown among Democrats as high-stakes Senate talks inch closer to a deal on President Joe Biden’s economic agenda.

Majority Leader Chuck Schumer and Senator Joe Manchin are negotiating a slimmed-down tax and spending plan. But Manchin says the federal deduction popular in high-tax states like New York, New Jersey and California, known as SALT, hasn’t been in the mix.