Income taxes

Senate Republicans are coming around to the $40,000 cap on state and local tax deduction key House lawmakers demand in President Trump's massive tax package.

President Trump's tax-and-spending agenda is nearing a climactic vote in the Senate this week.

Republican leaders are pressing to begin voting on the tax bill in the Senate at the end of next week.

President Trump expressed optimism that lawmakers could reach a compromise on the state and local tax deduction, a sticking point in his "One Big Beautiful Bill."

The prospect of prolonged talks with holdouts threatens Senate Majority Leader John Thune's goal of passing President Trump's tax-cut legislation by July 4.

The bill text will represent a major breakthrough for the GOP as it seeks to continue to advance the centerpiece of Trump's economic agenda.

A $30,000 cap on the state and local tax deduction would be a compromise between current law and the more generous limit in the House's version of the bill.

House Speaker Mike Johnson said he's pressuring Senate Republicans to refrain from changing a deal to increase the state and local tax deduction cap to $40,000.

President Trump told Senate Republicans he is open to a state and local tax deduction cap lower than the $40,000 in the House-passed version of his tax bill.

The deal that led the House to increase the maximum deduction for state and local taxes to $40,000 is not set in stone in the Senate.