It looks like a tentative deal has been brokered on Capitol Hill to provide a new SALT cap​, increasing the state and local tax deduction from $10,000 to $40,000.

House Speaker Mike Johnson on Wednesday revealed that an agreement has been reached with the SALT (state and local taxes) caucus on the deduction cap, paving the way for President Donald Trump’s tax bill to be presented in Congress.

Republicans and House Speaker Mike Johnson have come to an agreement to boost the state and local tax deduction to $40K, indicating that one of the last sticking points for President Donald Trump's massive tax cut bill has been resolved,

Under the bill, employees would be eligible for an annual income tax deduction of $25,000 for some types of cash tips.

Republicans, who hold thin majorities in Congress, are fighting over cutting Medicaid and other government programmes.

President Donald Trump’s “no tax on tips” pledge became a catchphrase for his 2024 campaign. Now it’s inching closer to reality.