SALT deduction battle erupts between House and Senate Republicans
Blue state House Republicans are up in arms following reports that the Senate GOP taxwriters are planning to eliminate the hard-fought increase to the state and local tax (SALT) deduction cap in President Trump’s upcoming agenda bill. The news has sparked outrage among Republicans in blue states, who are warning the Senate that any attempt to remove the SALT deduction increase will be met with strong opposition.
Rep. Mike Lawler, a Republican from New York, took to social media to express his frustration, declaring the Senate’s move as “DEAD ON ARRIVAL.” The Senate Finance Committee is expected to release its version of the tax bill later on Tuesday, with reports indicating that the SALT deduction cap is among the top changes being considered.
The SALT deductions were initially capped at $10,000 for both married and single filers under the 2017 Tax Cuts and Jobs Act. However, House Republicans from blue states have been pushing for an increase in the cap to provide relief to their constituents in high-tax areas like New York and California. The issue has become a rallying cry for these lawmakers, who argue that the current cap is unfair to residents in their districts.
Conservatives initially supported keeping the SALT cap in place to help fund Trump’s tax cuts, but the issue has gained momentum in recent months, with House Republicans demanding relief for their constituents. The House GOP bill includes a provision to raise the SALT cap to $40,000 for both single and married filers earning up to $500,000 per year.
Rep. Nicole Malliotakis, a Republican from New York City, criticized the Senate’s plan to revert to the $10,000 cap, calling it “insulting” and a “slap in the face” to Republican districts in blue states. She argued that the SALT deduction was carefully negotiated in the House and should remain in the final bill.
The SALT Caucus, led by Reps. Young Kim and Andrew Garbarino, issued a joint statement urging the Senate to uphold the negotiated SALT cap in the final bill. They emphasized the importance of delivering on the Republican agenda and providing tax relief to middle-class families across the country.
As Senate Republicans work to finalize their version of the tax bill, the fate of the SALT deduction remains uncertain. The House Republicans from blue states are standing firm in their demand for an increased cap, warning that any attempt to roll back the deduction could jeopardize the entire bill. The pressure is on Senate GOP taxwriters to find a compromise that satisfies all parties and ensures the passage of Trump’s agenda bill.
