Imposing that cap primarily affected high earners in blue states and allowed the government to raise more money from taxes, though it was offset at the time by sweeping tax cuts in the same Republican bill. Now, the push to raise the cap is a way to get more Democrats — particularly moderates and the aforementioned legislators from high-tax states with high earners — on board with the broader reconciliation bill.
But given that the existing SALT cap aligns with the general progressive belief that the highest earners should pay more in taxes to fund investments like the BBB, Democratic support for raising it can be confusing. Here’s why some Democrats want to see the SALT cap lifted anyway, what that would mean for tax policy in the US — and how it could affect ordinary American taxpayers:
