Joe Manchin’s surprise climate bill made chumps out of GOP Senate leaders, but don’t forget the House Democrats who pledged to oppose any tax deal unless it uncapped the deduction for state and local taxes (SALT). The Democrats drew a red line. Will Speaker Nancy Pelosi now herd them across it like a docile flock of lambs?
“We support the President’s agenda, and if there are any efforts that include a change in the tax code, then a SALT fix must be part of it. No SALT, no deal.” That was the unequivocal statement in January from Reps. Josh Gottheimer and Mikie Sherrill of New Jersey, along with Rep. Tom Suozzi of New York. A larger group, with 32 Democrats and Republicans, joined a bipartisan SALT caucus last year. Some of these Democrats won their seats in part by running against the GOP’s 2017 limit on the SALT deduction.