Booker backs Schatz. And some new details on the House GOP tax plan. (2025)

Breaking news:Sen.Brian Schatz(D-Hawaii) is picking up a key endorsement in his yet-to-be-announced bid to become the next Senate Democratic whip.

Sen. Cory Booker(D-N.J.), who was floated as a potential contender for the job, told us that Schatz has his “full, unqualified support” for the No. 2 Senate Democratic leadership post.

Schatz hasn’tofficially jumped into the contest but is seen as the frontrunner and has been making calls to Democratic senators.

Here’s whatBooker told us:

Sen. Dick Durbin(Ill.), the Democratic whip, announced his retirement Wednesday. The slot won’t open up until after the 2026 election, but Schatz and other hopefuls will spend the next 19 months lobbying colleagues for their support.

Tax news:House Republican tax writers have been soft-selling to corporate lobbyists a new cap on businesses’ state and local tax deductions. The effort is a sign that Republicans are seriously considering including the tax hike in their reconciliation package.

Remember, House Republicanleadership is pushing to pass the reconciliation bill by Memorial Day. The Ways and Means Committee hasn’t finalized its tax plans yet, and the real test of the GOP’s search for revenue will begin when members return to town next week.

But here’s what’sbeing considered, per key players on the Hill and downtown.

1)A new cap on business SALT.

This may bean easier sell if Republicans planned to cut the corporate income tax rate. But several people told us that the current21% corporate rate will go untouched. Republicans could move to only limit deductions for businesses’ state income taxes. Capping property tax deductions would ignite more GOP backlash.

If Ways and Meansincludes a business SALT cap in its proposal, there will be a bitter fight ahead with corporate America and conservative groups.

2)Cracking down on sports team owners’ tax breaks. A tax hike for mega-wealthy people who own professional teams is among PresidentDonald Trump’spersonal priorities for the tax bill.

Under one constructbeing discussed,the sports-owner tax increase could strip team owners of their ability to deduct the cost of buying a team over 15 years.

3)Ways and Means is also seriously considering increasing the endowment tax on colleges and universities. Schools like Harvard University and Columbia University – which have multi-billion dollar endowments — have become major Republican targets. House tax writers have considered a range of increases to the endowment tax.

4)Raisingthe taxon public companies’ stock buybacks. The tax is currently at1%.

The big picture:There’s heavy pressure from conservative House Republicans to find offsets. The White House is looking at a four-year timespan for Trump’s priorities of no taxes on tips, overtime pay and Social Security benefits,as we scooped.Those provisions could carry a heavy price tag.

Even though thepotential tax increases for corporate America — SALT deductions in particular — are causing heartburn on K Street, there are likely to be plenty of big wins for the business world in the bill.

Ways and Meansis planning to revive tax breaks for research and development, interest expenses and purchases of short-term assets like equipment and machinery. Republicans will try to extend these provisions permanently, according to multiple sources.

Here’s more news:Blue-state Republicans, House GOP leaders and Ways and Means Committee ChairJason Smith(R-Mo.) are meeting on the personal SALT cap Wednesday afternoon.

This will bea big moment for Republicans to resolve one of the most politically fraught problems for the tax bill. Most Republicans support the current $10,000 SALT cap. But a handful of blue-state GOP lawmakers have vowed to vote against a tax package unless the cap is increased to at least $25,000,as we scooped.

“Our party can’tafford to take our votes for granted, and securing them means significantly raising the SALT cap,” Rep.Nick LaLota(R-N.Y.) said. “This isn’t just policy — it’s about fairness, political reality and simple vote math.”

Rep. Nicole Malliotakis(R-N.Y.), a Ways and Means member, said she’s optimistic about striking a SALT deal that would benefit her Staten Island and Brooklyn district. “I’m focused on the middle class, and I think we can achieve a number that would provide the relief needed for the people I represent,” Malliotakis said.

Also:GOP leadership aides and committee staffers are expected to work through reconciliation plans for the next few weeks during a 10 a.m. meeting this morning.

House Republican leadershave been asking committees to hold markups over the next two weeks, a very ambitious timeline.