Trump Signs massive tax bill rising Salt Deduction cap
President Donald Trump signed his sweeping tax and spending legislation into law during a White House Fourth of July celebration Friday, delivering on campaign promises to extend expiring tax cuts while temporarily quadrupling the cap on state and local tax deductions.
The nearly 900-page "One Big Beautiful Bill" makes permanent most provisions of Trump's 2017 Tax Cuts and Jobs Act, which were set to expire at year's end, and raises the state and local tax deduction limit from $10,000 to $40,000 through 2029. The legislation passed the House 218-214 on July 3 and the Senate 51-50 earlier in the week, with Vice President JD Vance casting the deciding vote.
Political Calculation Drive Final Passage
Senate Majority Leader John Thune had previously called the House's original SALT provisions "very, very hard" to pass, reflecting resistance from Republicans representing lower-tax states. The compromise temporary increase allowed the measure to advance through budget reconciliation, requiring only a simple majority.
Ways and Means Committee Chairman Jason Smith called the legislation "the greatest piece of Republican legislation in a generation".
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