New York Republicans Signal Potential $80,000 SALT Cap

Watch New York Republicans Signal Potential $80,000 SALT Cap - Bloomberg on Dailymotion

Transcript

00:00To New York Republicans signal the cap on a salt deduction could reach as much as $80,000

00:05as the party works to come to a compromise on President Trump's tax package.

00:10Joining us now in Washington, D.C. is Bloomberg's Tyler Kendall.

00:12Tyler, welcome back. Let's talk about that compromise.

00:15What would that compromise actually look like?

00:18Yeah, hey, John, good morning.

00:19So the proposal you're referring to is being shorthanded here in Washington as $40,80.

00:24So it would lift the salt cap from $10,000 to $40,000 for individuals.

00:28And then you double it for married couples, and that's how you could reach that $80,000 number.

00:34Now, to be sure, at the moment, we have not gotten indications from House leadership

00:37that that's the number that's being seriously considered.

00:40But at the same time, we heard from two lawmakers from these high-tax states like New York, New Jersey,

00:45and California saying that that's a number that they could get behind.

00:48Remember, they have already said a hard no to the current proposal that's in the legislation,

00:53which would be lifting that cap to $30,000.

00:56They came into the week looking for a number as high as $62,000 for individuals.

01:00So perhaps this could be the sweet spot.

01:03But to be sure, there's still a lot that still needs to be worked out here.

01:06We could get some indications later on today.

01:08It's our understanding that House Speaker Mike Johnson will meet with these lawmakers from these high-tax states.

01:14But there's also reporting that he's going to invite some House Freedom Caucus members,

01:17these fiscal hawks, who say that the higher the salt cap goes,

01:20the greater the need to find additional savings elsewhere.

01:23Now, John, a few other areas of compromise I'd be looking out for here.

01:27One would be income limits.

01:28Who does this apply to at what price?

01:30And then also expiration dates, I think, are going to make their way into the conversation in a pretty meaningful way.

01:36Perhaps they will lift that salt cap, but how long it stays on is going to be a big question.

01:40So, let's see.