5 GOP House Members Could Doom Trump Tax Bill Over SALT Reform
WASHINGTON—An influential group of five House Republicans from high-tax states is threatening to hold up a major tax package that is a top priority for President Donald Trump unless they get a significant boost to the amount that their constituents can deduct from federal income taxes to reflect state and local taxes already paid.
As negotiations over a major tax cuts bill get underway, they are also drawing a firm line: simply doubling the maximum allowed SALT deduction from the current $10,000 cap to $20,000, they say, is not enough. “The $20,000 is a nonstarter,” Rep. Nick LaLota, R-NY told CNBC. “It’s almost laughable. It’s way too low to earn our vote.”
Rounding out the group are Reps. Mike Lawler and Andrew Garbarino. of New York, Rep. Tom Kean Jr. of New Jersey and Rep. Young Kim of California. Under the current makeup of the House, Republican Speaker Mike Johnson of Louisiana can afford to lose only two GOP votes and still pass a piece of legislation along party lines. As a five-vote bloc, these SALT Republicans could effectively sink the tax cut bill that is expected to be Trump’s top legislative priority.
Earlier this month, Rep. Lawler reintroduced the “SALT Fairness and Marriage Penalty Elimination Act” in the 119th Congress. The legislation would increase the SALT deduction cap to $100,000 for single filers and $200,000 for married couples filing jointly, addressing what he termed is an unjust penalty in the current tax code while supporting continuing efforts to fully repeal the SALT cap for New Yorkers.
“For too long, the people of the Hudson Valley have shouldered the weight of some of the highest taxes in the nation,” Rep. Lawler said. “The SALT cap has only made that worse and unfairly penalized middle-class families in my district.”