New York Republicans Dismiss ‘Insulting’ Proposal for SALT Tax Relief

Four New York Republican lawmakers publicly rejected an offer from House Speaker Mike Johnson and the House Ways and Means Committee Chairman Jason Smith regarding the expansion of the state and local tax (SALT) deduction. Their strong opposition signals a significant challenge for GOP leaders who are trying to pass the tax provisions of their party-line bill aligned with former President Donald Trump’s agenda in the upcoming committee session.

With only three Republican votes to spare in the closely divided House, party leaders face pressure to resolve this issue promptly. The contentious SALT deduction, which currently has a $10,000 cap introduced by Trump’s 2017 tax law, is crucial for many GOP representatives in high-tax regions such as New York and New Jersey.

These lawmakers have been working towards a compromise to lift the cap. However, the four New Yorkers stated that the proposed increase to a $30,000 cap falls short of their expectations and is inadequate for their constituents.

In their statement, Representatives Elise Stefanik, Andrew Garbarino, Nick LaLota, and Mike Lawler expressed their discontent with the lack of engagement before the cap was proposed. They emphasized the fairness of a higher SALT cap and criticized the move as insulting, suggesting it could undermine support for the overall legislation.

LaLota has been particularly vocal about the necessity of expanding the SALT deduction, while Lawler and Stefanik are eyeing potential gubernatorial runs in New York where this issue is pivotal. Before adjourning for the week, Speaker Johnson indicated that the discussions surrounding the SALT cap were ongoing, signaling that potential adjustments might still be possible.

Notably, Rep. Nicole Malliotakis, a Ways and Means Committee member, did not endorse the joint statement but mentioned that a resolution was achievable with further negotiation.