Fact Check: The Senate version of the tax bill proposes permanently extending the $10,000 state and local tax deduction (SALT), while the House bill seeks to increase it to $40,000 for households earning up to $500,000.

What We Know

The current legislative landscape surrounding the State and Local Tax (SALT) deduction is complex. The House version of the tax bill indeed proposes to increase the SALT deduction cap from $10,000 to $40,000 for households earning up to $500,000, with both thresholds indexed to grow by approximately 1% annually over ten years (LaLota Brokers SALT Deal). This change is seen as a significant relief for many taxpayers in high-tax states, particularly in New York, where property taxes often exceed the current cap (The SALT Deduction in the House Budget Bill).

Conversely, the Senate version of the tax bill has not yet adopted this increase and is reported to maintain the $10,000 cap, which has been a point of contention among lawmakers (Senate GOP dials down SALT cap — for now). The Senate's proposal is still under negotiation, and while there is pressure from some members to revise the SALT cap, as of now, it remains unchanged (SALT Caucus Republicans seethe at $10,000 cap in Senate's 'big ...).

Analysis

The claim that the Senate version proposes a permanent extension of the $10,000 SALT deduction is accurate in that the Senate has not proposed any increase to this cap as of the latest reports. The House bill's proposal to raise the cap to $40,000 for households earning up to $500,000 is also well-documented and reflects a significant shift aimed at providing relief to middle-class families in high-tax areas (LaLota Brokers SALT Deal, The SALT Deduction in the House Budget Bill).

However, the assertion that the Senate version is "permanently" extending the $10,000 cap is somewhat misleading. While it is true that the Senate has not proposed an increase, the ongoing negotiations could lead to changes in the future. Reports indicate that the Senate's current proposal is a placeholder and that discussions are still active (Senate Republicans plan to tweak SALT tax deal in massive Trump bill, SALT Cap: Senate Draft Tax Bill Stays With Current $10,000 Limit).

The reliability of the sources varies; the statements from Rep. Nick LaLota are direct and reflect his legislative actions, while broader news reports provide context but may be influenced by political biases. The Washington Post and Politico are generally considered credible sources, but they may also reflect the political leanings of their readership (The SALT Deduction in the House Budget Bill, SALT Caucus Republicans seethe at $10,000 cap in Senate's 'big ...).

Conclusion

The claim is Partially True. The House bill does propose increasing the SALT deduction cap to $40,000 for households earning up to $500,000, which is a significant change from the current $10,000 limit. However, the Senate's position is less clear-cut, as it currently maintains the $10,000 cap without any proposed increase, but negotiations are ongoing. Therefore, while the claim captures the essence of the legislative proposals, it oversimplifies the Senate's stance by implying a definitive permanence to the $10,000 cap.

Fact Check: The Senate version of the tax bill proposes permanently extending the $10,000 state and local tax deduction (SALT), while the House bill seeks to increase it to $40,000 for households earning up to $500,000.