SALT deduction

The outline of the tax and spending bill provided a breakthrough after a long standoff between moderate senators and progressive Democrats.

Influential lawmakers still want various tax provisions in the bill.

The spending package could still include a measure to expand or temporarily remove the cap on the deduction on state and local taxes.

What pros are making; getting clients to pay; keeping the SALT cap; and other highlights from our favorite tax bloggers.

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.

One suggested that a two-year repeal of the $10,000 cap will be the final solution.

The specific tax hikes remain to be detailed, as does any move to suspend or expand a $10,000 SALT cap.

Democrat legislators are attempting to move forward with the next step needed to pass President Biden’s economic agenda.

High-earning taxpayers would face much smaller tax hikes — or even cuts — if Democrats decide to restore the federal deduction for state and local taxes in legislation that’s now moving through the House.

House Democrats are considering a two-year repeal as one of their potential paths to undoing the $10,000 cap on the federal deduction for state and local taxes.