Republicans Inch Closer to a SALT Cap Compromise

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00:00House Speaker Mike Johnson saying Republicans could reach a compromise on the salt deduction

00:04today. A main sticking point in Trump's economic package. Bloomberg's Tyler Kendall joins us now

00:08from the nation's capital for more. Tyler, let's talk about that sticking point. What does a

00:12compromise look like? Yeah, hey, John. So at this point, the proposal that's on the table is what

00:18you outlined there. It would lift the salt cap from $10,000 to $30,000 per individual and be

00:24phased out with income limits. But these Republicans from high tax states like New York, New Jersey,

00:28California, say that's not enough to ease the tax burden on their constituents. And for context,

00:34they came into this week saying that they wanted to see that cap lifted to $62,000. Now, we know

00:39House Speaker Mike Johnson is negotiating with them directly, and there appears to be a way out of

00:44this, which is that the tax bill currently on the table is pricing out at about $3.8 trillion. We

00:50know the House had about $4 trillion to work with, so there could be some additional room there. But

00:55of course, that would spur concerns by fiscal hawks who are looking for savings where they could. A few

01:01different areas where we could potentially see some compromise. The Speaker said that they're

01:05considering doubling the cap for married couples. That could potentially be somewhere where we could

01:10see some broad consensus. And then the other thing to watch for could be expiration dates. So perhaps

01:14they will lift the cap to a higher level, but it just won't stay in for as long. John, in all of

01:20these conversations, though, important to keep in mind that these lawmakers are really digging in.

01:24These are Republicans that represent swing districts in blue states. They say that they

01:29helped deliver this majority for Republicans, and this is the issue that they campaigned on.