Senate GOP Leaders Grapple with SALT Deduction Deal Amid Pressure from Trump and Musk

Senate GOP leaders are facing challenges in reconciling the House’s deal on the state and local tax (SALT) deduction. Despite emerging from a meeting with President Donald Trump without a clear agreement, top Senate Republicans remain committed to scaling back the House’s SALT deal. Senate Majority Leader John Thune emphasized that no Republican senator is particularly concerned about the SALT issue, suggesting changes may be necessary to secure Senate votes. Senate Finance Committee Chair Mike Crapo highlighted the lack of Republican senators from high-tax states, indicating limited support for the $353 billion allocation. However, Senate Republicans acknowledge the need to be mindful of the House’s narrow margins and the potential impact on Speaker Mike Johnson’s coalition. The meeting with Trump primarily focused on making business tax cuts permanent, with Thune and Crapo expressing determination to achieve this goal. The Senate Republicans are working against a July 4 deadline to pass the legislation, amid public pressure from Trump ally Elon Musk, who criticized the bill as an “abomination.”