SALT tax mutiny threatens progress on Trump’s ‘big, beautiful bill’

Republicans representing districts in Democrat-controlled states are facing off over taxes that primarily affect them as negotiations for President Donald Trump’s “big, beautiful bill” heat up. The main point of contention is the state and local tax deductions, commonly known as SALT.

GOP lawmakers from high-cost-of-living areas outside major cities have been pushing for an increase in the current cap on SALT deductions, which stands at $10,000 for both single filers and married couples. However, tensions rose on Thursday night when leaders of the House’s SALT Caucus rejected an offer from GOP leaders to raise the deduction to $30,000.

In a statement, the House’s SALT Caucus expressed their disappointment with the offer, calling it insulting and a risk to derailing President Trump’s agenda. They argued that a higher SALT cap is a matter of fairness, especially for taxpayers in states like New York who already send more to Washington than they receive back.

While some members of the New York delegation supported the $30,000 cap, others, like Reps. Mike Lawler, Nick LaLota, Elise Stefanik, and Andrew Garbarino, rejected the offer outright. The disagreement highlights the divide within the Republican Party on this issue.

House Speaker Mike Johnson’s office clarified that no commitment had been made to the $30,000 number and that discussions were ongoing among members. The Ways & Means Committee, responsible for the tax-writing portion of the bill, is expected to unveil its portion of the legislation in the coming days.

Republicans in California, New York, and New Jersey have been leading the charge to lift the SALT deduction cap, arguing that it is essential for their constituents. They have proposed raising the cap to as high as $100,000, but Republicans in other areas have largely rejected this proposal.

The debate over the SALT deduction cap is critical for vulnerable lawmakers in the House GOP Conference, as their seats are key to maintaining the party’s slim majority. While some conservatives argue that raising the deduction unfairly burdens taxpayers in well-governed states to support poorly managed ones, others believe it is necessary for fairness and equity.

As negotiations continue on President Trump’s agenda bill, the fate of the SALT deduction cap remains uncertain. The outcome of these discussions could have far-reaching implications for taxpayers in high-cost-of-living areas and the future of the Republican Party as a whole.