New York Democrat says SALT deal could be reached this week

Rep. Thomas Suozzi (D-N.Y.) said Monday that he expects there to be some kind of an agreement this week on Democrats’ multitrillion-dollar social spending package, including on the state and local tax (SALT) deduction.

Suozzi told reporters that he expects the spending package to be considered by the House Rules Committee as soon as Tuesday. Provisions on the SALT deduction are likely to be added to the bill in the Rules panel.

Republicans created a $10,000 cap on the SALT deduction in their 2017 tax reform law. Democratic lawmakers from high-tax states generally are strongly opposed to the cap, arguing that it hurts their residents and states. But some progressives oppose full repeal of the cap, saying the move would primarily benefit high-income households.

Changes to the SALT deduction were not included in the portion of the spending package that the House Ways and Means Committee advanced earlier this month. However, top Democratic lawmakers have indicated that the SALT deduction cap will be addressed in the final bill.

Suozzi said Monday that he is confident that some type of change to the SALT cap will ultimately be included. He said there are many lawmakers who are passionate about the topic, including Senate Majority Leader Charles Schumer (D-N.Y.).

“I feel very good about this. Things are moving in the right direction. There are a lot of other people that are very concerned about this issue,” Suozzi said.

It remains to be seen exactly what changes to the SALT deduction cap are added to the bill. A Democratic aide said that there have been talks about a two-year repeal of the cap.