Businesses Pounce as GOP Weighs Limiting Corporate SALT Break

Retailers are warning they could be hit with higher effective tax rates under the proposal.Photographer: Yuki Iwamura/Bloomberg
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Business groups are mobilizing to squelch a plan gathering momentum among Republicans to curtail a heavily used federal income tax break that allows corporations to deduct state and local taxes.

The proposal to cap or eliminate the so-called C-SALT deduction, which has especially riled manufacturers, oil and gas producers and life insurers, is gaining traction with lawmakers as they search for ways to contain the cost of a giant tax cut package Republicans are rushing to approve by the end of May.