State and Local Tax (SALT) Deduction Overview - Prior to 2017, the state and local tax deduction was unlimited, allowing families to reduce their federal taxable income by the full amount of state and local taxes paid [1] - In 2017, Congress capped the SALT deduction at $10,000, impacting areas with high real estate values [2] - The new tax and spending bill addresses this issue with an increased deduction for state and local taxes [2] Impact and Criticism - States like Florida and Texas may also benefit from the increased SALT deduction [3] - Critics argue against federal subsidization of high state and local taxes in states like New York [3]

Legislative Progress - House Republicans are moving towards a final vote on a bill before President Trump's July 4th deadline [2] - The House is approaching the 24-hour mark in session [3] - The House Speaker can only afford to lose three votes, needing 217 votes for passage [5] Political Implications - Democrats are expected to use the bill as campaign messaging during the 2026 midterms [4] - Congressman Brian Fitzpatrick raised concerns about changes to Medicaid, representing a district Trump lost in 2024, highlighting potential midterm impacts [6] - The bill is considered a part of the "America First" agenda [2] Procedural Aspects - The minority leader was afforded a "magic minute," allowing for an extended speech [3] - Republicans aim to finalize passage quickly after the minority leader's speech [4] - An earlier vote on the rule had 219 Republicans on board, indicating support but also one holdout [5]