*Any county within the district that averages over $1,000 in SALT deductions per filed federal tax return in 2018.
While Smith’s bill doesn’t address the SALT cap, it would temporarily expand the standard deduction for individuals. That would make the $10,000 limit less important for some households.
Smith, who leads the House Ways and Means Committee, said he has been meeting with Republicans from high-tax states and is confident he has enough votes to get his bill through the House after Congress’s summer break. It appears unlikely to become law as written. Democrats are open to business-tax changes but also want to expand the child tax credit in ways that Republicans oppose.
Smith suggested that SALT cap changes could be possible in an end-of-year bipartisan bill—but not now.
“You don’t vote against a bill because of what’s not in it,” Smith said.
The SALT fight has dogged lawmakers for years. In 2017, House Republicans considered eliminating the deduction before settling on the $10,000 cap. The House passed that bill with 12 Republicans opposed, but Smith and House Speaker Kevin McCarthy (R., Calif.) don’t have that cushion now with their 222-212 majority.