SALT Deal Eludes Democrats as Millionaires Cut From Tax Break
- Menendez agreed to lower income threshold to under $1 million
- Sanders wants to exclude top 1% of households from SALT plan
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Senate Democrats have an emerging agreement to exclude millionaires from an expansion of the state and local tax deduction, but key negotiators continue to clash over the specific income limits for one of the unresolved issues in President Joe Biden’s economic agenda.
Senators Bob Menendez and Bernie Sanders have been leading two Democratic factions in talks over how to address the tax break for people in high-tax states such as New York and New Jersey. Menendez, a New Jersey Democrat, wants a more generous federal deduction for state and local taxes, or SALT, while Sanders wants to curb the benefit so it won’t benefit the highest earning households.