The state and local tax deduction (SALT deduction) is a United States federal itemized deduction that allows taxpayers to deduct certain taxes paid to state and local governments from their adjusted gross income.
The SALT deduction is intended to avoid double taxation by allowing taxpayers to deduct state and local taxes from their income that is assessed for federal income tax. Eligible taxes include state and local income taxes and property taxes.
New Democrats, also known as centrist Democrats, Clinton Democrats, or moderate Democrats, are a centrist ideological faction within the Democratic Party in the United States. As the Third Way faction of the party, they are seen as culturally liberal on social issues while being moderate or fiscally conservative on economic issues. New Democrats dominated the party from the late 1980s through the early-2010s, and continue to be a large coalition in the modern Democratic Party.
With the rise of progressivism in 2016 and 2020 amidst the presidential campaigns of Bernie Sanders, and that of the right-wing populism of Donald Trump, New Democrats began to change and update their ideological positions. Debates over tax cuts on capital gains have been reconfigured to removing caps on state and local tax deduction (SALT).
View the full Wikipedia page for New Democrats (United States)The One Big Beautiful Bill Act (acronyms OB3; OBBBA; OBBB; BBB), or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025. Although the law is popularly referred to as the One Big Beautiful Bill Act, this official short title was removed from the bill during the Senate amendment process. Therefore, the law officially has no short title.
The OBBBA contains hundreds of provisions. It permanently extends the individual tax rates Trump signed into law in 2017, which were set to expire at the end of 2025. It raises the cap on the state and local tax deduction to $40,000 for taxpayers making less than $500,000, with the cap reverting to $10,000 after five years. The OBBBA includes several tax deductions for tips, overtime pay, auto loans, and creates Trump accounts, allowing parents to create tax-deferred accounts for the benefit of their children, all set to expire in 2028. It includes a permanent $200 increase in the child tax credit, a 1% tax on remittances, and a tax hike on investment income from college endowments. It phases out some clean energy tax credits that were included in the Biden-era Inflation Reduction Act, and promotes fossil fuels over renewable energy. It increases a tax credit for advanced semiconductor manufacturing and repeals a tax on silencers.
View the full Wikipedia page for One Big Beautiful Bill Act