House Republican leadership offered to increase the cap on state and local tax deductions as they negotiate with blue-state Republicans holding up passage of the reconciliation bill.

Leadership offered a $40,000 cap on deductions for individuals and $80,000 for joint filers, Politico reported. The SALT Republicans, who represent high-taxed blue states like New York, New Jersey, and California, are pushing for the cap to increase to $62,000 for individuals and $124,000 for joint filers.

Rep. Mike Lawler, R-N.Y., recently rejected legislation from the House Ways and Means Committee that would increase the cap from $10,000 to $30,000 for those making under $400,000. Lawler has argued that Republicans like him are the reason the GOP has a majority in Congress.

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