The future of President Donald Trump's "One Big Beautiful Bill" that would fund his second-term agenda could depend on SALT. The State and Local Tax deduction has been a wedge between Democrats and Republicans but now a division between Republicans representing high-tax districts and GOP fiscal hardliners who look at it as subsidizing blue states.

The narrow win for the bill, which hikes the deduction for state and local taxes to $40,000, came after Speaker Mike Johnson won over right-wing fiscal hawks and a small group of rebels from the

Early Thursday morning, the House of Representatives passed the One Big Beautiful Bill Act by one vote. The bill had been amended by the Rules Committee, and it now goes to the Senate for consideration.

One of the most contentious issues in the “big, beautiful" tax bill is how much to raise the state and local tax deduction, or SALT, for tax filers. Here's what that means.

The agreement marks a big win for SALT cap crusaders like Rep. Mike Lawler (R-NY) and others who have demanded the SALT cap be lifted as part of reconciliation.

A little-known provision that allows rich residents of high-tax states to lower their federal tax bill became one of the biggest sticking points in negotiations over Republicans' massive spending plan.

The new version of the Trump tax bill would raise the state and local tax deduction cap to $40,000, in an effort win over a group of holdouts from New York, New Jersey and California. The higher limit would begin this year. The amount allowed would gradually phase down for taxpayers with annual incomes greater than $500,000.

Conservative hardliners threatened to block President Donald Trump’s massive tax and spending package just as an agreement to increase the state and local tax deduction removed a key obstacle.

A vote on Trump’s big budget bill could come early Thursday morning. The legislation would extend tax cuts and add billions in new spending – and trillions in debt.