Johnson’s $40,000 SALT Deduction Deal Faces GOP Pushback in Trump’s Big Bill
Sarah Johnson
May 21, 2025
Brief
House Speaker Mike Johnson negotiates a $40,000 SALT deduction cap increase, but GOP hardliners may block the deal, risking party unity.
House Speaker Mike Johnson has struck a tentative deal with blue state Republicans to raise the state and local tax (SALT) deduction cap to $40,000, up from $30,000, as part of President Trump’s ambitious legislative package. This agreement, aimed at households earning under $500,000 annually, seeks to ease the tax burden for residents in high-cost areas like New York City and Los Angeles.
But here’s the rub: not all Republicans are on board. Hardliners from lower-tax states argue this move rewards blue states’ high-tax habits, potentially deepening fiscal divides. Meanwhile, blue state GOP lawmakers warn that failing to raise the cap could jeopardize their party’s House majority in 2026. The deal’s fate hangs in the balance as internal debates rage on taxes, Medicaid, and green energy subsidies.
This compromise reflects the tightrope Johnson walks, balancing regional priorities with party unity in a politically charged landscape.
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Editor's Comments
Looks like Mike Johnson’s playing tax Twister—stretching to please blue state Republicans while dodging a kick from the hardliners. Why did the SALT cap go to therapy? Because it’s caught between high-tax blues and low-tax reds!
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