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The $10,000 cap on state and local tax deductions would remain unchanged in the massive tax bill making its way through Congress, under a proposal released Monday by the Republican-led Senate Finance Committee. The proposal calls for "permanently" extending the $10,000 cap on so-called SALT deductions, first passed by Congress in 2017 and signed into law by President Donald Trump during his first term. Before 2017, there was no limit on the amount of state and local tax deductions a homeowner could write off when filing their federal income taxes. Long Island’s two House Republicans — Reps. Andrew Garbarino (R-Bayport) and Nick LaLota (R-Amityville) — immediately spoke out against the proposal, which comes after the Republican House majority voted last month for a version of the tax bill that would raise the current SALT cap to $40,000. The $40,000 cap was negotiated by a group of blue-state Republicans, including Garbarino and LaLota, with House Speaker Mike Johnson after the group threatened to vote against the bill if a larger deduction on state and local taxes was not included. The lawmakers had previously rejected a $30,000 cap offer and have leveraged their numbers in a narrowly split chamber, where three Republican defections can tank a bill. 'Instead of undermining the deal already in place and putting the entire bill at risk, the Senate should work with us to keep our promise of historic tax relief and deliver on our Republican agenda,' Garbarino wrote in a statement.
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