The SALT deduction limit is set to rise to $40,000 in 2025. Experts say this could spell significant tax savings for many Americans, particularly those in high-tax states, and even present a rare chance for some to pay 0% capital gains.

Senator Chuck Schumer and Representative Hakeem Jeffries challenged New York Republican lawmakers after President Donald Trump demanded they cease their opposition to changes in state and local tax deductions. The confrontation over the SALT deductions is intensifying, with implications for Trump’s sprawling budget bill.