The Big Story 

Senate Republicans say they’re going to rewrite the 1,000-plus page package the House narrowly passed Thursday to enact President Trump’s agenda.

Here are some of the areas they are eyeing changes. ????

© The Associated Press

State and local tax deductions: Speaker Johnson and House Republicans hailing from high-tax blue states held intense talks in recent weeks to nail down a deal on the state and local tax (SALT) deduction cap that helped the chamber clear the bill before Memorial Day.

Much to their chagrin, it’s possible that could all be for nought, as Senate Republicans are widely expected to throw their weight around over how to handle the SALT deduction cap.

Medicaid: Sens. Josh Hawley (R-Mo.), Susan Collins (R-Maine), Lisa Murkowski (R-Alaska) and Jerry Moran (R-Kan.) are threatening to oppose Medicaid reforms that would cut benefits, and they are taking a close look at limits in the bill on states’ ability to use health care provider taxes to collect more federal Medicaid funding.

Green energy incentives: Senate Republicans may want to loosen the tough stance the House bill takes on climate-friendly tax credits. 

The Hill has more changes to watch for here.

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Tax Watch 

Senate GOP weighs SALT changes

Senate Republicans are staring down a collision course with the House as they weigh possible changes to the state and local tax (SALT) deduction cap as part of larger revisions to the party’s massive tax bill.

“There’s not one Republican in the United States Senate who gives a s‑‑‑ about SALT,” Sen. Kevin Cramer (R-N.D.) said. “Having said that, what does matter is 218 votes in the House, and we want to be cognizant about that.”

For much of the last month, the issue had been a vexing one for Speaker Mike Johnson (R-La.) and House Republicans as the group of nearly a half-dozen SALT members held the keys, intent on reversing what they viewed as a wrong implemented during the 2017 tax cut package. 

“It comes down to costs. It’s probably going to get entangled [in the larger debate]. I hate the SALT policy,” Sen. Thom Tillis (R-N.C.) told reporters.

Tillis, a former Speaker of the House in Raleigh, noted, though, that he’s sympathetic to Johnson’s plight and recognizes the cap probably has to remain in the bill in some form as it is debated in coming weeks.

— Al Weaver has the latest here.

Tax Watch is a regular feature focused on the fight over tax reform and extending the 2017 Trump tax cuts this year. Email a tip

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