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Roundup: Budget package and consumer confidence sink

What to know for your weekend

The House Budget Committee failed to reach consensus on a budget package Friday. (Getty Images)
The House Budget Committee failed to reach consensus on a budget package Friday. (Getty Images)

House committee nixes budget plan

The House Budget Committee defeated a budget package, 16-21, Friday, with several hard-right lawmakers joining Democrats against it, arguing that the proposed cuts weren't deep enough.

The committee is scheduled to reconvene Sunday, the Associated Press reported.

The state and local taxes, or "SALT," cap, was one of the sticking points. A group of Republicans fought for a $40,000 cap on deductions for solo filers and an $80,000 cap for joint ones. The talks pushed the limits from earlier this week when politicians spoke of a $30,000 cap.

The first Trump administration proposed SALT under the Tax Cuts and Jobs Act of 2017. It went into effect in 2018 and is set to expire at the end of this year. Policymakers from high-tax states, including California and New York, argue that the cap disadvantages their constituents the most.

Consumer sentiment remains somber

"Consumer sentiment was essentially unchanged this month, inching down a scant 1.4 index points following four consecutive months of steep declines," the University of Michigan has reported. Consumer sentiment fell 26.5% year-over-year in May, according to the university's monthly surveys.

Tariffs seem to be top of mind for shoppers, according to the report's director, Joanne Hsu.

"Many survey measures showed some signs of improvement following the temporary reduction of China tariffs," Hsu said in the report, "but these initial upticks were too small to alter the overall picture — consumers continue to express somber views about the economy."