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

Congress is likely to pass a tax cut on tipped wages this year. What we know about President Donald Trump's "one, big, beautiful, bill."

If the House provision is enacted, the SALT cap would rise to $40,000, up from $30,000 in the previous plan, and phase out over $500,000.

The bill, passed by a single-vote margin, would fulfill many of Trump's populist campaign pledges. All of the chamber's Democrats and two Republicans voted against it. One Republican missed the vote because he had fallen asleep.

Under the bill, employees would be eligible for an annual income tax deduction of $25,000 for some types of cash tips.

The Dow closed lower by 817 points, or 1.91%. The broader S&P 500 slid 1.61% and the tech-heavy Nasdaq Composite fell 1.41%. The three major indexes each posted their worst day in one month.

If passed by the Senate, the new expanded SALT cap would benefit millions of big earners in high-tax states, including New York, New Jersey, Pennsylvania, Maryland, Oregon and California.