The approval of the 'One Big Beautiful Bill Act' in the House has highlighted significant divisions within the Republican Party, especially regarding the state and local tax (SALT) deduction.

If the House provision is enacted, the SALT cap would rise to $40,000, up from $30,000 in the previous plan, and phase out over $500,000.

Few states have more riding on the future of the SALT deduction than New York. With some of the highest property taxes in the country and a high-income tax rate layered on top, New York residents are disproportionately affected by the current $10,000 cap on state and local tax deductions.