The president suggested to the group of moderates that allowing more families to deduct their state and local taxes, known as SALT relief, may be left out of the party’s final $2 trillion package entirely. The proposed changes could amount to thousands of additional dollars in tax refunds per year to residents of states with high property taxes, such as New York, New Jersey and California.
Senate Majority Leader Chuck Schumer was quickly pressed by House moderates on whether the SALT relief had been removed altogether. Within hours, Schumer was on the phone with White House officials, questioning whether Biden had cut out relief that’s a must for many members who represent the most affected states.
Some Democrats say Schumer’s personal intervention helped salvage the tax break, which has been a critical political priority for Northeastern Democrats since GOP leaders slashed the tax benefit four years ago. Had Biden indeed axed the proposal in a meeting with a handful of House members, it would have been a major blow not just to a broad swath of lawmakers but also to Schumer as he seeks reelection.