(The Center Square) – As Congress weighs the “big, beautiful bill,” a proposed hike to the state and local tax deduction cap is drawing fire for favoring taxpayers in high-tax states, like Illinois. Taxpayers who itemize can deduct up to $10,000 in state and local taxes from their federal taxes—a cap set by the 2017 tax law. A provision in the legislation the U.S. Senate sent back over to the House Tuesday would raise that cap to $40,000 for most people, but phase it out for those earning over $500,000. “This is considered to be specifically a subsidy for high-income taxpayers in high-tax states because there are some lower-tax states where even relatively high earners aren't paying $10,000 in state and local taxes due to low property and income taxes,” said Tax Foundation analyst Katherine Loughead.