Democrats have vowed to block the Build Back Better bill, according to Reuters

By Jarrett Renshaw

(Reuters) – Several members of the Democratic Party of President Joe Biden are threatening to block a new boost to the Build Back Better spending bill if it does not include the extension of the federal tax deduction for taxes paid to states and local authorities.

The extension of the deduction, known as the SALT for State and Local Taxes, has been in demand by lawmakers in fiscal states like California, New Jersey and New York, especially in neighborhoods where Democrats want to maintain control in the Nov. 8 election.

“We support the President’s agenda, and if there is an effort that includes changing the tax code, SALT should be part of that fix. No SALT, no agreement,” said New York-based Tom Suozzi and members Mikie Sherrill and Josh. Gottheimer, both of New Jersey, said in a joint statement Thursday night.

The SALT deduction, a portion of the U.S. income tax code that was created more than a century ago, was limited to $ 10,000 in a 2017 Republican tax law.

The restrictions disproportionately affect homeowners in higher-value states facing the Democratic Party, such as New Jersey, where the average homeowner pays about $ 9,000 in local property taxes.

Asked about the demand for members of the House of Representatives, a White House official said: “We have been in contact with many legislators about the president’s plan for middle-class economic growth, and we measured SALT at the end of last year, but we get” not negotiate in public. ”

The “SALT caucus” has more than 30 members in the House of Representatives who want to extend the deduction, including some Republicans, according to congressional aides.

Their demand adds to the challenges the White House is trying to save https://www.reuters.com/world/us/how-white-house-hopes-save-bidens-spending-bill-2022-01-18 Biden’s 1 , A $ 7 trillion spending package and move forward with a small majority in Congress.

As the White House tries to cut that bill, it may have to throw hundreds of billions of dollars into social programs, but it will have to save SALT, a tax deduction that some parties call a gift to the rich.

House Speaker Nancy Pelosi can only side with three because the Democrats control a 435-member majority in the House.

The House approved a version of Biden’s social spending bill that raised the limit to $ 80,000, despite objections from some progressives that it largely benefits higher-income households. The bill died in the 100-member Senate for lack of support from a majority of Democrats.