WASHINGTON—A bipartisan group of lawmakers is pushing to eliminate the cap on federal tax deductions for state and local taxes (SALT) but many argue that such a move would massively favor the rich. For decades, the ability to deduct SALT has been an important tax break for taxpayers who itemize deductions on their federal income tax returns. The 2017 Tax Cuts and Jobs Act (TCJA), however, limited the deduction for SALT payments to $10,000 a year. Any state and local individual income or property tax payments in excess of that amount are no longer deductible by taxpayers. Blue states, especially those with higher individual income and property tax rates, have objected to this cap and some even tried to create tax maneuvers to avoid this limitation. Democrats last year proposed lifting the cap on the SALT deduction for 2020 and 2021 as part of a COVID relief package. They argued that lifting the cap would provide relief to people …