House Republicans are making progress towards a potential breakthrough on the state and local tax (SALT) deduction, with Speaker Johnson predicting a deal may be reached soon. Despite unveiling a sweeping tax plan that includes a proposed increase of the SALT deduction cap to $30,000, significant divisions remain, particularly among New York Republicans who feel the offer is insufficient and are threatening to derail the bill. As moderates and hard-liners dig in, discussions continue, raising concerns that unresolved issues surrounding SALT could jeopardize Republican efforts to advance their broader tax agenda. Lawmakers are aware that failure to adequately address SALT could have political ramifications, potentially costing the GOP seats. As negotiations intensify, the outcome remains uncertain.