Accounting
New Yorkers vow to block House GOP tax bill over SALT limit
Two New York Republican lawmakers promised to block their party’s signature tax legislation unless GOP leaders raise a proposed $30,000 limit on the federal income tax deduction for state and local taxes.
Their public declarations on Monday shortly after House Republicans released a draft version of their tax bill underscores the difficulty party leaders will have securing passage as lawmakers from high-tax states demand greater increases in the SALT limit, politically vulnerable Republicans chafe at Medicaid cuts and fiscal conservatives press for more spending reductions.
Representative Mike Lawler, a New York Republican, called the proposed SALT limit “woefully inadequate” and said in a Bloomberg Television interview he is a “hard no” on the legislation unless the cap is increased.
Nick LaLota, another New York Republican, said he was “insulted” by the limit and would be a “hell no” vote against it.
Three other Republicans — New York’s Andrew Garbarino and Elise Stefanik and Young Kim of California — have previously rejected a $30,000 SALT cap, calling it insufficient and saying they would vote against a bill including such a limit.
The House tax committee’s draft bill to renew President Donald Trump’s 2017 tax cuts also would impose a new income limit on the deduction, phasing it out for individuals earning more than $200,000, or married couples earning more than $400,000.
That’s just a fraction of what SALT advocates in the House want, LaLota said. A group of lawmakers — largely from New York, New Jersey and California — most committed to expanding the tax break want a $62,000 deduction cap for individuals, or twice that for couples, the person said. They also demand those levels be indexed for inflation in future years, and that the higher limits are available for taxpayers starting in 2025.
House Speaker Mike Johnson told reporters Monday shortly before the draft legislation was released that no final SALT limit had been set yet. The House Ways and Means Committee is slated to debate the legislation Tuesday and party leaders could modify it at any point before a House vote.
“There were lots of numbers discussed,” Johnson said, following a meeting with lawmakers concerned about the tax break.
The draft legislation caps the SALT limit at $30,000 for both individuals and married couples, up from the current $10,000 limit imposed in the 2017 law. Prior to that law, there was no limit on the deduction and without new legislation the limit would automatically be removed when the 2017 law expires at the end of the year.
The SALT issue has been one of the most contentious for the House GOP to resolve as party leaders try to ram a multitrillion-dollar tax cut package through the House in May. The larger the cap adjustment is, the less money there will be for other tax cuts on the Republican agenda.
House Republicans are trying to keep revenue losses from their tax cut package down to a self-imposed limit of $4.5 trillion. They are also aiming for $2 trillion in spending cuts.
The ceiling must accommodate a nearly $4 trillion extension of the expiring 2017 Trump tax cuts as well as new cuts to taxes on tips and overtime. Republicans also want new tax breaks for seniors, car buyers and businesses building factories in the U.S.
Total postsecondary spring enrollment grew 3.2% year-over-year, according to a report.
The National Student Clearinghouse Research Center published the latest edition of its
The report found that undergraduate enrollment grew 3.5% and reached 15.3 million students, but remains below pre-pandemic levels (378,000 less students). Graduate enrollment also increased to 7.2%, higher than in 2020 (209,000 more students).
(Read more:
Community colleges saw the largest growth in enrollment (5.4%), and enrollment increased for all undergraduate credential types. Bachelor’s and associate programs grew 2.1% and 6.3%, respectively, but remain below pre-pandemic levels.
Most ethnoracial groups saw increases in enrollment this spring, with Black and multiracial undergraduate students seeing the largest growth (10.3% and 8.5%, respectively). The number of undergraduate students in their twenties also increased. Enrollment of students between the ages of 21 and 24 grew 3.2%, and enrollment for students between 25 and 29 grew 5.9%.
For the third consecutive year, high vocational public two-years had substantial growth in enrollment, increasing 11.7% from 2023 to 2024. Enrollment at these trade-focused institutions have increased nearly 20% since pre-pandemic levels.
Jordan Vonderhaar/Photographer: Jordan Vonderhaar/
The Internal Revenue Service has released
The Inflation Reduction Act of 2022 amended Sec. 55 to impose the CAMT based on the “adjusted financial statement income” of an “applicable corporation” for taxable years beginning in 2023.
Among other details, proposed regs provide that “applicable corporation” means any corporation (other than an S corp, a regulated investment company or a REIT) that meets either of two average annual AFSI tests depending on financial statement net operating losses for three taxable years and whether the corporation is a member of a foreign-parented multinational group.
Prior to the publication of any final regulations relating to the CAMT, the Treasury and the IRS will issue a notice of proposed rulemaking. Notice 2025-27 will be in IRB: 2025-26, dated June 23.
Trump’s tax bill could end ‘SALT’ workaround for some businesses
Trump says ‘extremely hard’ to make a deal with China’s Xi as trade stalemate fuels calls for leaders to talk
Retirement account balances dip in Q1 2025 as savings rates hit record high
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
Are American progressives making themselves sad?
-
Blog Post3 days agoCommon Bookkeeping Challenges and Solutions for Small Businesses
-
Economics1 week agoMAGA: protecting the homeland from Canadian bookworms
-
Personal Finance7 days agoHarvard, Trump international enrollment battle affects college applicants
-
Accounting1 week agoHighest paid jobs in corporate accounting
-
Economics7 days agoElon Musk says Trump’s spending bill undermines the work DOGE has been doing
-
Economics1 week agoHow young voters helped to put Trump in the White House
-
Personal Finance1 week agoHow to pay college tuition bills with your 529 plan
-
Finance7 days agoGameStop shares rise as retailer meme stock buys first bitcoin batch, scooping up $500 million