Connecticut Democrat Jim Himes acknowledges the GOP plan to raise the SALT deduction cap could benefit his state’s residents despite his opposition to the broader Republican tax bill. The SALT cap increase would apply to households making $500,000 or less per year. The GOP’s “One Big Beautiful Bill Act” includes tax cuts, border security measures, and over $1.5 trillion in spending reductions.
Connecticut Democrat Acknowledges Benefits of GOP SALT Proposal
Representative Jim Himes, a prominent Connecticut Democrat and ranking member on the House Intelligence Committee, has conceded that the Republican plan to raise the cap on state and local tax (SALT) deductions would benefit his constituents. While Himes didn’t vote for the GOP’s comprehensive “One Big Beautiful Bill Act,” he acknowledged the potential advantages for residents in high-tax states like Connecticut. The proposal would increase the SALT deduction cap from $10,000 to $40,000 for households earning $500,000 or less annually.
The SALT deduction allows taxpayers to deduct state and local taxes from their federal tax returns, providing significant relief for residents in states with higher tax burdens. The current $10,000 cap was established by the 2017 Tax Cuts and Jobs Act under the Trump administration, which particularly affected high-tax blue states like New York, New Jersey, Connecticut, and California. Many Democrats from these states have long advocated for raising or eliminating this cap.
The House-passed budget bill's SALT cap increase "is going to be good" for Connecticut, which has one of the highest state and local tax burdens in the U.S., says Rep. Jim Himes (D-CT), but adds, the bill "fails spectacularly" otherwise.
"The American people want basically three… pic.twitter.com/XdAjfZ3pXu
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Broader Context of the Republican Tax Package
The SALT cap increase is just one component of the broader Republican tax package, officially titled the “One Big Beautiful Bill Act.” The legislation contains sweeping tax cuts, increased border security measures, defense enhancements, energy reforms, and over $1.5 trillion in spending cuts. House Speaker Mike Johnson (R-La.) has championed the bill as a comprehensive approach to stimulating economic growth while addressing fiscal concerns.
A contentious aspect of the bill involves proposed work requirements for Medicaid and Supplemental Nutrition Assistance Program (SNAP) recipients. Critics argue these requirements could potentially affect insurance coverage for approximately 7.7 million Americans. Speaker Johnson has defended these provisions, stating they target “fraud, waste, and abuse” rather than cutting essential benefits from those who truly need them.
"Top Connecticut Dem Jim Himes admits GOP SALT increase would ‘be good’ for his state" – New York Post #SmartNews https://t.co/IErcdB5men
— Mike (@gupdiver) May 26, 2025
Fiscal Implications and Political Dynamics
Economic analyses suggest the bill could add approximately $3.1 trillion to the federal deficit over the next decade, a point frequently raised by opponents. Johnson and other Republican proponents counter that economic growth stimulated by the tax cuts would offset these concerns. The bill faces significant challenges in the Senate, where even some fiscal conservatives have expressed reservations about its impact on the national debt.
Interestingly, Democrats had previously attempted to raise the SALT cap in both 2021 and 2022 but were unsuccessful in their efforts. The current Republican proposal puts some Democrats from high-tax states in a difficult position – opposing a bill that contains provisions that would directly benefit their constituents. Himes’ acknowledgment of the benefits for Connecticut residents highlights this political conundrum while maintaining his opposition to the overall package.
Impact on Residents of High-Tax States
For residents in states like Connecticut, the practical impact of raising the SALT cap would be substantial. Homeowners and taxpayers in high-property-tax areas would see immediate tax relief, potentially saving thousands of dollars annually. The $40,000 cap would allow many middle- and upper-middle-class families to deduct a much larger portion of their state and local tax burden than currently permitted.
While the future of the Republican tax package remains uncertain, the debate over the SALT deduction cap continues to highlight the complex intersection of federal tax policy, state fiscal decisions, and regional economic disparities. For now, Connecticut residents and those in similar high-tax states will be watching closely as lawmakers determine whether this potential tax relief becomes reality.