Senate, Trump and tax
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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, pushing back on President Donald Trump’s willingness to scale back the write-off.
Senate Republicans seeking to put their mark on the House-passed tax-and-immigration package are considering raising the state and local tax deduction cap to $30,000, lower than the House’s $40,000 plan.
Speaker Johnson is now staring down Senate tax writers who are doubling down on threats to scale back his carefully negotiated deal to raise the state-and-local-tax deduction cap.
Republicans in the House have proposed a $40,000 cap for those with incomes less than $400,000 after Rep. Mike Lawler argued for it.