Our spies on Capitol Hill tell us that the House budget deal might quadruple the state and local tax deduction to $40,000. At least there will be a cap on the deduction at an income of around $500,000 – with the exact details to be worked out.

This is an absurd subsidy to the high tax blue states of California, Illinois, Maryland, New Jersey and New York.

Only 9% of tax filers itemize their deductions, so the vast majority of the taxpayers in SALT ringleader Rep. Mike Lawler’s district don’t even benefit from the deduction.

This loophole will add at least $300 billion to the debt over the next decade. That’s money that could be used to lower the business tax rate and create jobs.

Not a single Republican senator represents a high-tax blue state, so we hope the Senate bill fixes this monstrosity.