New Stimulus Package May Be Delayed By $10,000 Deduction

New Stimulus Package May Be Delayed By $10,000 Deduction

President Joe Biden (center), Vice President Kamala Harris (left), and Speaker of the House Nancy ... [+] Pelosi (right) (Photo by Melina Mara-Pool/Getty Images) The new stimulus package may be delayed by a $10, 000 deduction. Here's what you need to know—and what it could mean for your bank account. President Joe Biden's new stimulus package — a $2. 3 trillion infrastructure proposal — has met some opposition from an unlikely source: House Democrats. Members of the New York Congressional Delegation aren't upset with the new stimulus package or whether there will be a fourth stimulus check. Rather, they're potentially willing to oppose the stimulus package based on this one thing: a cap on a $10, 000 tax deduction that adversely affects residents of New York, California, New Jersey and other states. Some House Democrats feel so strongly about this one provision that "we will reserve the right to oppose any tax legislation that does not include a full repeal of the [state and local tax deduction] limitation." Specifically, these House Democrats are referring to the state and local tax (SALT) deduction, which historically allowed individuals to deduct their full state and local taxes on their federal income tax returns.