Senate holds $10,000 SALT deduction: GOP backlash grows in high-tax states

The Senate GOP's tax proposal preserves the $10,000 state and local tax (SALT) deduction, a move that has ignited criticism from Republican lawmakers in high-tax states such as New York.

This retention contrasts with the House-passed bill, which had limited the SALT deduction, causing significant backlash.

In addition to maintaining the SALT deduction, the Senate plan introduces new work requirements for Medicaid recipients, including able-bodied single adults aged 18 to 64 without dependents, and parents of teenagers.

"The proposals from Republicans keep in place the current $10,000 deduction of state and local taxes, called SALT, drawing quick blowback from GOP lawmakers from New York and other high-tax states," highlighting the political tension within the party.

These Medicaid work requirements are designed to offset the costs of making President Donald Trump's tax breaks more permanent, aiming to reduce federal spending on healthcare programs used by 80 million Americans.

"Senate Republicans on Monday proposed deeper , including new work requirements for parents of teens, as a way to offset the costs of making President Donald Trumps tax breaks more permanent in draft legislation unveiled for his."

However, Senate Democratic Leader Chuck Schumer criticized the GOP's approach, warning that the proposed Medicaid cuts are more severe than those in the House bill.

"Senate Democratic Leader Chuck Schumer warned that the Senate GOPs draft cuts to Medicaid are deeper and more devastating than even the Republican Houses disaster of a bill."

The debate underscores the ongoing struggle within Congress to balance tax relief with fiscal responsibility, especially as lawmakers from high-tax states push back against limitations on SALT deductions.

The Senate GOP has maintained the $10,000 SALT deduction in its tax proposal, sparking backlash from Republican lawmakers in high-tax states like New York. The plan also includes new Medicaid work requirements aimed at offsetting costs of making President Trump's tax breaks permanent.