‘Donors’ vs ‘takers’: SALT battle stirs debate between blue and red states

President Trump’s domestic agenda bill is spurring a debate over whether blue states are subsidizing red states.

After a successful pressure campaign from blue-state Republicans, the House version of Trump’s bill was amended to boost the state and local tax (SALT) deduction cap to $40,000.

The agreement was a major win for a handful of House Republicans from wealthier districts in blue states. The GOP lawmakers backing the larger cap argued their constituents tend to pay higher...