WASHINGTON — The Senate on Wednesday rejected a Democratic attempt to give relief to people hit hardest by new limits on how much of their state and local tax bill they can deduct from federal taxes.
The regulations were a key part of the GOP’s 2017 tax code overhaul, limiting the deduction permitted for state and local taxes to $10,000.
Republicans enthusiastically defeated the Democratic move on a 52-43, mostly party-line vote.
The state and local tax, or SALT, provision was a major revenue-raising piece of the 2017 law, permitting that measure’s GOP architects to lower taxes elsewhere in the code. But it caused an uproar and cemented strong Democratic opposition to the measure since capping the SALT deduction was seen in part as an assault on so-called blue states with high concentrations of upper-bracket taxpayers.
Republicans from New Jersey were among those who paid a steep political price, losing ground in wealthier suburbs.