House Republican sees SALT limit rising to $30K

Representative Jeff Van Drew said he thinks House Republicans will end up approving a $30,000 cap on the state and local tax deduction, a significant boost to the valuable and politically important write-off.

"$30,000 is fine for me," the New Jersey Republican said Thursday, referring to the SALT cap for individuals. "That's where I think it ends up, by the way."

Van Drew's suggestion touches on what will be one of the most politically sensitive discussions in Congress as Republicans negotiate President Donald Trump's tax-cut agenda, which will almost certainty include an increase to the current $10,000 SALT cap.

Some Republicans from high-tax states, including New Jersey, New York and California, have said they will block the bill unless it includes a substantial expansion of the SALT deduction, which was capped in Trump's first-term tax bill.

The House on Thursday passed a budget resolution that will allow both chambers of Congress to move forward on crafting a tax-cut package, which they want to pass in the coming months. But they have yet to agree on many of the details, including how much to increase SALT and which of Trump's campaign proposals to enact, including calls to eliminate levies on tips and overtime pay.

A draft of the tax bill being drafted by Trump administration officials and other Republicans includes a proposal to increase SALT as high as $25,000 for an individual, a level some House lawmakers have called inadequate.

Van Drew said that swing district moderates are not going to "roll over" on the tax package as they fight for priorities, including a higher SALT cap and minimizing cuts to entitlement programs. 

SALT advocates in Congress have been hesitant to publicly endorse specific deduction levels with negotiations still in the early phase. Republicans will face several hard choices as they seek to fit all of their tax priorities into a $5.3 trillion bill, and find spending cuts to satisfy hardline conservatives.