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One of the greatest conflicts between the Republicans of the Chamber and the Senate in tax reductions for the rich bill is the deduction of salt (state and local tax). The level of salt deduction is vital for the bill for the Republicans of the moderate chamber in the Blue States of the North. A decrease in deduction is an increase in tax for residents faced with high local and state tax charges.
The bill on tax reductions barely adopted the Chamber after President Mike Johnson had to negotiate with moderate republican members to obtain their agreement on a drop of salt of $ 40,000.
When the Senate Republicans began to make noise of wanting to lower the deduction, President Johnson warned them not to do so, and the Moderate Republicans said that if the deduction is reduced, it would kill the final bill.
The Senate Republicans lowered the deduction to $ 10,000.
Jake Sherman from Punchbowl News published on X:
The finance of the Senate puts a salt ceiling of $ 10,000 in their bill. They see it as a negotiation mark.
Representative Mike Lawler (R-DY), one of the Republicans of Salt Caucus, answered Sherman:
Consider this the answer to the “negotiation mark” of the Senate: died on arrival.
A group of House Republicans could explode the Rich Bill tax reductions, and they head for a confrontation with the Senate.
The Senate Republicans take this step, because for them, salt is not a problem. The vast majority of Senate Republicans come from rural states, small states or non-northeast states.
If the Republicans of the Senate referred this bill to the House, it would not be surprising to see him rejected, and the two parties find themselves in the conference and were to negotiate a final bill with each other.
The Republicans of the moderate chamber know that if they hold out, they can obtain better agreement by working with the Democrats on the legislation before the end of the year. The pressure is on Johnson and Thune because the debt limit expires towards the end of the summer, and Trump’s tax reductions expire at the end of the year.
Trump originally wanted to sign this bill by July 4, but everything is much closer to the collapse than ever to become law.
What do you think of the Republicans who collapsed? Share your reflections in the comments below.