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Johnson reaches tentative $40,000 SALT deduction cap deal for Trump’s bill


Mike Johnson’s home speaker reached a suspended agreement with Republican Blue State MPs to increase the limit of state and local tax deductions, or “salt”, to $ 40,000 in President Donald Trump The so -called “Great, Beautiful Bill”, Republican sources confirmed Fox News late Tuesday.

The proposed limitations – which is 30,000 dollars increasing – would be by household for taxpayers who earn less than $ 500,000 a year.

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Mike Johnson's house speaker

The speaker of the house Mike Johnson, R-L., Speaks at a press conference with other members of the Republican leadership of House in Washington, DC, the United States, May 20, 2025. (Nathan Posner/Anadolo via Getty Images)

It remains unclear whether the GOP stubborn that opposes the raising of the deduction of the salt of the deduction to check out the measure.

An agreement first reported by Politico and confirmed Fox News comes as Home Gop Fractures are included in discussions about high -backed taxes, subsidies for Medicaid and Green Energy while making the president’s “big, wonderful account”.

Donald Trump stands next to Mike Johnson

President Donald Trump and the speaker of the house Mike Johnson, R-L. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

Salt deduction primarily uses people who live in high whole areas such as New York, Los Angeles and their surrounding areas.

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Mike Johnson speaks at a press conference

The speaker of the house Mike Johnson, R-L., Speaks during a press conference on the capitol, May 6, 2025 in Washington. (AP Photo/Rod Lamkey, Jr., File)

Republicans representing these areas framed the raising of the solo limit of salt as an existential question, claiming that the failure to resolve this could cost GOP a majority of the Midterms 2026 house.

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Meanwhile, Republicans representing states with lower tax are generally careful of raising the restriction of deduction, believing that it encourages blue states’ High tax policy.

Elizabeth Elkind Fox News Digital contributed to this report.



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