GOP split over SALT cap hike
Rep. Mike Lawler (R-N.Y.) appears on “Sunday Morning Futures” to discuss President Trump’s meeting with blue-state Republicans over SALT cap repeal and congestion pricing in New York City. .
President-elect Donald Trump is congratulating Republicans on negotiating a key tax that could be key to the party’s negotiations for a major conservative policy overhaul next year.
President Trump met with a diverse group of House Republicans at Mar-a-Lago over the weekend. That includes blue-state Republicans who make up the House SALT caucus. The House SALT Caucus is a group that opposes the current $10,000 cap on state and local tax (SALT) deductions. It primarily affects urban and suburban residents in areas with high income and property taxes, such as New York, New Jersey, and California.
“I think it was productive and successful,” Rep. Nicole Malliotakis (RN.Y.) said of the meeting. “The President supports our efforts to increase the salt deduction. Mayors and governors in blue states understand the pressure on taxpayers and want to provide relief at the federal level. There is.”
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President-elect Donald Trump tells New York Republicans they will work together on a number of priorities (Chip Somodevilla/Getty Images)
But Trump also indicated he was aware of opposition from other members of the House Republican conference, especially Republicans in rural districts who view the SALT deduction as a tax cut for the wealthy. Until the cap was imposed in 2017, there was no limit to the amount of state income taxes and local property taxes that people could deduct from their income when filing their federal returns.
“He gave us a little bit of homework to work on: a number that would free middle-class voters from the high taxes imposed by governors and mayors, but also a number that would allow us to build consensus and achieve our goals. There is also. [a 218-vote majority]” Malliotakis said.
“I think we pretty much know that the SALT cap is not going to be completely eliminated. There is an appetite, not only within Congress but also among American taxpayers, to lower taxes on the ultra-wealthy. There is no.
“Our efforts really target middle-class families, and that’s where we focus to achieve the right balance.”
The current SALT deduction cap has been opposed by New York and California lawmakers for most of its existence since it was imposed in President Trump’s Tax Cuts and Jobs Act (TCJA).
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Rep. Nicole Malliotakis told Fox News Digital that President Trump would work with New York Republicans on congestion pricing (Drew Angerer/Getty Images)
As of September last year, Trump hinted at a change in policy during his second administration, posting on Truth Social that he would “bring back SALT, lower taxes, etc.”
The talks are part of broader talks by Republicans to pass a major overhaul of fiscal and conservative policies through a process known as “reconciliation.”
This process lowers the Senate passage threshold to a simple majority rather than two-thirds, allowing the party that controls both chambers of Congress and the White House to pass certain legislation, conditional on the budget and other fiscal issues. It becomes possible to do so.
Some Republicans who support the SALT deduction, such as Rep. Mike Lawler of New York, have indicated they may withhold support for the final bill if the cap is not increased.
“The only red line for me is that I won’t support any tax bill that doesn’t eliminate the SALT cap,” Lawler told Fox News’ Sunday Morning Futures.
Lawler also said Trump agreed that the cap on salt deductions needs to be increased.
House Republicans will have a razor-thin majority from Trump’s inauguration, likely sometime in April, with virtually no margin for error.
Rep. Mike Lawler said capping SALT deductions is a “red line” to support budget reconciliation legislation (Tierney L. Cross)
Meanwhile, President Trump also told New York state Republicans he would help fight the state’s controversial congestion pricing regulation, which imposes additional fees on car traffic in parts of Manhattan.
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“He understands how unfair this is and how it impacts the city’s economy and the people we represent, so he is now working to reverse the Biden administration’s rubber stamp,” Malliotakis said. We are working with him on his legal options.” “If there was a legal option, if there was a legal option to end congestion pricing, he would do it.”
“You know, there are cops, police, firefighters, nurses, restaurant workers who have to come to work at odd hours, but they don’t drive because they don’t feel like the transportation system is clean and safe. I’ll drive.”
Congestion pricing went into effect in New York City earlier this month.
FOX News Digital has reached out to Trump’s transition team for comment on this weekend’s meeting.
Elizabeth Elkind is a political reporter for FOX News Digital, where she leads coverage of the House of Representatives. Previous digital bylines can be found on the Daily Mail and CBS News.
Follow @liz_elkind on Twitter and send tips to elizabeth.elkind@fox.com.
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