Johnson pushes to maintain $40,000 SALT deduction cap. Can the "Build Back Better" bill pass the Senate?

Speaker of the US House of Representatives, Mike Johnson, said he is working to maintain the $40,000 state and local tax deduction (SALT) limit in the tax reform bill under consideration in the Senate. Currently, Republicans are trying to reduce the extent of this tax benefit. Johnson said in an interview on Thursday, "I am indeed working hard to hold onto this number," "I hope they can accept this proposal." The day before this statement, Republican members of the Senate Finance Committee had just met with President Trump at the White House to discuss modifying the comprehensive tax reform plan, where they proposed tightening the SALT limit. Senate Majority Leader John Thune revealed to reporters that since no Republican senators are advocating for expanding the deduction limit, it is expected that the Senate will modify the House proposal. Johnson stated that he has informed senators that considering the internal divisions within the fragile Republican majority, the SALT provision is crucial to ensure the passage of the bill when it comes back to the House for a final vote this summer. "I told my friends, I feel like I'm using dental floss across the Grand Canyon right now," he described the difficulty of the negotiations. In the interview, Johnson also defended another controversial provision in the tax reform bill. The provision is called "retaliatory tax," which imposes additional fees on foreign investors in the US from countries with "unfair" tax systems. "I think Section 899 is in our favor," Johnson said. But he admitted that senators are discussing modifications to this provision, including a proposed revision to further clarify that additional fees do not apply to interest on US debt investments and other portfolios. The Speaker mentioned that despite policy disagreements with the Senate, and public opposition from billionaire Republican ally Elon Musk, he still expects the bill to pass before July 4th. Johnson pointed out that trying to raise the debt ceiling outside of the tax reform bill would require concessions to Democrats in exchange for supermajority support in the Senate, while the tax reform bill only requires a simple majority to pass in the Senate. The Senate plans to raise the US debt limit by $5 trillion through this bill. This has led Senator Rand Paul to vow to vote against it, and three conservative lawmakers have demanded larger spending cuts. "We will move forward as planned," Johnson promised.