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.

A proposed $40,000 cap on the SALT deduction reignites debate over who benefits most, especially in high-tax states.

Senate Majority Leader John Thune has argued that the ability to write off state and local taxes only benefits homeowners in high-tax states.