SALT Has Become a Hotly Debated Topic in Politics, but What Does It Even Mean?
"Americans don’t deserve to be taxed on the taxes they have already paid."
Published May 21 2025, 1:07 p.m. ET
The acronym SALT, short for State and Local Tax deduction, was dragged into the political spotlight in May 2025 as one of the clauses responsible for holding up a Trump administration bill. Lawmakers argued over the proposed cap on SALT deductions, stalling the bill from further progression.
The SALT deduction was created to help ease the burden of state and local taxes for individual taxpayers, shifting some of that load off them and onto the federal government, per Congress. With the current SALT deduction cap set to expire at the end of 2025, the topic has sparked widespread discussion, but also some confusion. So, what exactly is SALT, and why does it matter? Here's a simple explanation.
What does SALT mean in politics?
SALT, which stands for State and Local Tax, refers to a tax break that allows taxpayers to reduce their federal tax liability based on what they’ve paid in certain state and local taxes. This tax relief is only available to those who itemize their deductions instead of taking the standard deduction and can apply to expenses like state income taxes and property taxes.
The Tax Cuts and Jobs Act (TCJA) established a cap on the SALT deduction in 2017, which took effect in 2018 and lasts through 2025. The current SALT cap, set to expire in 2025, is $5,000 for married taxpayers filing separately and $10,000 for all other filer types.
SALT became a political issue as lawmakers debated whether to raise the deduction caps.
SALT deductions became a hot topic in May 2025 as lawmakers debated caps (all looking to increase them) in a Republican tax and spending package aimed at reaching Donald Trump’s desk (hopefully soon). With the current cap set to expire at the end of 2025, lawmakers will need to come to terms and decide whether to raise the cap, keep it, or eliminate it.
Before the 2017 Tax Cuts and Jobs Act, the SALT deduction was unlimited for those who itemized. Now, however, the proposals vary. For instance, the House Ways and Means Committee suggested raising the cap to $30,000 for joint filers earning up to $400,000, while Republican SALT Caucus members are pushing for $62,000 for individuals and $124,000 for couples, per The Hill. Another plan floated on May 20 proposes a $40,000 cap for individuals earning $500,000 or less.
There seems to be more support for higher SALT caps in states like New York, where folks are hit with a higher cost of living, especially when it comes to state income and property taxes. Senator Chuck Schumer, a New York native and longtime politician, has been vocal about pushing for more SALT relief and recently called out Trump for his administration’s lack of support.
"Donald Trump came to Long Island and talked a big game about restoring SALT relief," Schumer wrote on X (formerly Twitter) on May 20, adding that Trump said, "I will turn it around, get SALT back, lower your taxes, and so much more."
He proceeded to call Trump a liar, writing "Today, he’s once again proved himself a liar and made New York House Republicans look like fools."
And while plenty of lawmakers are on board with increasing SALT caps, others, like some on Fox News, argue there shouldn’t be a SALT deduction at all.