Blue-state Republican lawmakers are proposing to significantly expand the cap on federal deductions for state and local taxes that would unfairly benefit wealthy residents of Democratic-run states with high tax burdens.
New York Republican Rep. Mike Lawler SALT Fairness and Marriage Penalty Elimination Act On Wednesday, the move would allow federal taxpayers to increase their state and local tax deductions by up to $100,000 for single filers and up to $200,000 for married couples filing jointly. The reintroduction of the bill comes ahead of House Republicans representing blue states who are scheduled to meet with President-elect Donald Trump this weekend to discuss tax policy. (Related: Meet 9 members of Congress who outperformed Nancy Pelosi in the stock market last year)
New York state spending is out of control and Governor Hochul should be held accountable, but we will lift or repeal the SALT cap to stop the oppressive double taxation being forced on New Yorkers. There is a need. I won’t stop until I’m done. pic.twitter.com/SH5Hw39q6F
— Mike Lawler (@lawler4ny) January 8, 2025
In addition to Mr. Lawler, other Republicans reportedly attending the meeting at Mar-a-Lago include Nicole Malliotakis of New York, Nick Larota of New York, Andrew Garabino, Tom Keene of New Jersey, and Sens. of California. Includes each Republican member, Young Kim.
Trump’s signature tax law, the Tax Cuts and Jobs Act (TCJA), passed during his first term in 2017, sets a $10,000 cap on SALT on federal returns. Notably, the TCJA will expire at the end of this year unless Congress passes a new tax proposal to extend the tax cuts.
Lawler and other Republicans representing districts in blue states that face high state and local taxes are pushing for an increase in the SALT cap as part of Republican negotiations to extend the tax cuts passed in 2017. is claimed.
“The 10,000 cap is woefully inadequate,” Lawler told Bloomberg TV this week. “It’s having a negative impact on states like New York.”
“Taxpayers should not be penalized for living in a high-tax state. This is double taxation,” Lawler added. “And for my colleagues who say this is some kind of subsidy, the fact is New York State contributes more to the federal government than it receives and my colleagues don’t want federal subsidies. We’re contributing more than any other state that claims to be.” Taxpayers are subsidizing New York. But the reality is the opposite. ”
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