Speaker Mike Johnson (R-La.) and moderate Republicans have zeroed in on an agreement for the state and local tax (SALT) deduction cap, three sources told The Hill, solving a critical hang-up that has dogged the party’s “big, beautiful bill.”

The proposal would increase the SALT deduction cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income, three of the sources said. One source said the level would increase 1 percent a year over 10 years.

That marks an increase from the $30,000 cap with a $400,000 income cap currently in the bill — a provision that SALT Caucus members vehemently rejected. The House Rules Committee is scheduled to convene at 1 a.m. Wednesday, during........

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