The fate of the state and local tax deduction, or SALT, is dividing lawmakers by geography as well as politics.

The Republican-led House of Representatives has passed a sweeping budget package that would fulfill many of President Donald Trump's priorities. The Republican-led Senate next takes up the package, with significant changes likely.

House Republicans are pushing a plan to tax money transfers sent by foreigners residing in the U.S. to friends and

Immigrants and wealthy universities, as well as foreign companies, would see higher taxes under the House-passed bill.

California Republicans were pleased that lower- and middle-income residents will be able to deduct more of their state and local taxes, or SALT. The deduction, now capped at $10,000, would rise to $40,000 for those with taxable incomes of less than $500,000.

Rep. Andrew Clyde, who owns a gun shop worth millions of dollars, said he “asked” for the tax breaks for gun silencers in Donald Trump’s tax bill.

The U.S. House of Representatives passed a sweeping Republican-backed tax and spending bill Thursday that would impose a 21 percent tax on Harvard’s endowment returns — the latest in a series of federal measures inflicting harsh financial penalties on the University.

Lawmakers are close to a deal that would raise the SALT cap to $40,000—offering potential tax relief for homeowners in high-cost states.