Former President Donald Trump has indicated his willingness to revisit the $10,000 cap on state and local tax (SALT) deductions, a key issue for Republicans representing high-tax states like New York, New Jersey, and California. During a meeting with House Republicans at Mar-a-Lago, Trump expressed support for increasing the SALT deduction, acknowledging the burden high state and local taxes place on taxpayers in these areas. Rep. Nicole Malliotakis (R-NY) described the meeting as "productive," stating that Trump understands the need for federal relief from these taxes.
However, Trump also acknowledged the opposing viewpoint within the House GOP, particularly from representatives of rural districts who view SALT deductions as primarily benefiting the wealthy. Malliotakis indicated that Trump tasked the group with finding a compromise that could garner a 218-vote majority, suggesting a full repeal of the cap is unlikely. The focus, she emphasized, is on providing relief to middle-class families.
Trump's renewed interest in the SALT deduction issue comes after he hinted at revisiting the cap during his second presidential campaign. These discussions coincide with broader Republican efforts to enact significant fiscal and policy changes through the budget reconciliation process. Rep. Mike Lawler (R-NY) has stated his refusal to support any tax bill that doesn't address the SALT cap. He confirmed that Trump agreed on the need for change.
In addition to SALT deductions, Trump addressed New York's controversial congestion pricing plan with the New York Republicans. Malliotakis reported that Trump is exploring legal avenues to challenge the Biden administration's approval of the plan, aiming to alleviate the financial burden on commuters, particularly essential workers. She stated Trump would halt congestion pricing if a legal option exists. The new pricing plan went into effect earlier this month.
