'No SALT no deal': Democrats vow to block Build Back Better bill without tax break

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Several U.S. House members from President Joe Biden's Democratic Party are threatening to block a renewed push for his Build Back Better spending bill if it does not include the expansion of a federal deduction for taxes paid to states and local entities.

Expanding the deduction, known as SALT for State and Local Taxes, has been a demand of lawmakers in higher-tax states such as California, New Jersey and New York, especially in suburbs where Democrats seek to retain control in Nov. 8 elections.

The cap disproportionately affects homeowners in higher home-value states that lean toward the Democratic Party, like New Jersey, where the average homeowner pays roughly $9,000 in local property taxes. The "SALT caucus" has more than 30 members in the House of Representatives who want to expand the deduction, including some Republicans, congressional aides say.some of Biden's $1.7 trillion spending package and push it through with slim congressional majorities.

 

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