Trump tasks blue state Republicans with ‘homework’ as GOP plots massive conservative policy overhaul

The Republican Party is currently facing a division over the issue of lifting the cap on state and local tax (SALT) deductions. Rep. Mike Lawler, R-NY, recently joined ‘Sunday Morning Futures’ to discuss the ongoing debate within the GOP regarding this contentious issue. The lifting of the SALT cap has become a key point of contention as Republicans gear up for a major conservative policy overhaul in the coming year.

President-elect Donald Trump recently met with various groups of House Republicans at Mar-a-Lago, including members of the House SALT Caucus, a group that is opposed to the current $10,000 cap on SALT deductions. This cap primarily affects residents in urban and suburban areas with high income and property taxes, such as New York, New Jersey, and California.

During the meeting, Rep. Nicole Malliotakis, R-N.Y., expressed optimism about the discussions, stating that President Trump supports efforts to increase the SALT deduction to provide relief for taxpayers in blue states. However, Trump also acknowledged the opposition from rural district Republicans who view SALT deductions as tax breaks for the wealthy.

While lawmakers are working to find a balance that benefits middle-class families, there is a recognition that a complete lifting of the SALT cap may not be feasible. The current cap, imposed in 2017 as part of the Tax Cuts and Jobs Act, has been a source of contention for New York and California lawmakers.

Some Republicans have made it clear that they will not support a tax bill that does not lift the SALT cap. Rep. Mike Lawler emphasized that this issue is a “red line” for his support on a budget reconciliation bill. With a slim majority in the House, Republicans have little margin for error as they navigate these negotiations.

In addition to the SALT cap, Trump also addressed New York Republicans’ concerns about congestion pricing in Manhattan. The controversial rule imposes an additional cost on drivers in certain parts of the city, impacting various essential workers who rely on driving for their commute.

Overall, the discussions surrounding the SALT cap and congestion pricing reflect the broader challenges facing the GOP as they work towards a fiscal and conservative policy overhaul through the process of reconciliation. The outcome of these negotiations will have significant implications for taxpayers and lawmakers in blue states like New York and California.