Tax Reform Bill Vote Delayed Amid SALT Deduction Disagreements

The House Speaker has expressed uncertainty about the timeline for voting on the tax reform bill, stating that it may not be possible to vote on it before July 4th. The Speaker, along with the Treasury Secretary, believes that a compromise on the state and local tax (SALT) deduction cap can be reached soon. However, the Speaker acknowledged that the bill might not be voted on by the July 4th deadline set by the President.

The President has indicated that he will remain in Washington over the weekend to pressure lawmakers into reaching an agreement. There are still significant disagreements within the Republican Party regarding several contentious issues, including the SALT deduction cap, cuts to Medicaid, and the overall cost of the bill.

The Treasury Secretary met with a group of Republican lawmakers known as the "SALT Republicans" on Thursday. While progress was reported, there was strong opposition from a New York Republican representative to the idea of maintaining the new SALT deduction cap at 40,000 dollars for only five years.

During an interview with Fox Business, the Treasury Secretary expressed optimism about reaching an agreement, stating that it would benefit constituents and ensure fairness for all Americans. The "SALT Republicans" are advocating for an increase in the SALT deduction cap from the current 10,000 dollars to 40,000 dollars in the House bill, while the Senate version maintains the 10,000 dollars cap.

Representatives from New York, New Jersey, and California have threatened to block the bill if sufficient concessions are not made on the SALT issue. Recent negotiations have leaned towards including the 40,000 dollars cap in the bill, but senators are pushing for higher thresholds in other SALT provisions.

The negotiations have been fraught with challenges. One representative described a proposal from the Treasury Secretary as "insulting and disgusting," leading to a refusal to attend the meeting. However, other lawmakers did attend. On Friday, the representative mentioned a proposal to keep the SALT deduction cap at 40,000 dollars for five years before reducing it back to 10,000 dollars, a plan he strongly opposed.