In the News
Bloomberg Tax: SALT Boost Gets New Push by GOP Lawmaker Ahead of Trump Meeting
By Zach C. Cohen,
January 8, 2025
A key Republican congressman is reintroducing legislation to increase the write-off on state-and-local dues for federal taxpayers, doubling down on a proposal to partially restore relief for individuals and families in high-tax states. Rep. Mike Lawler (R-N.Y.), a swing vote on Republicans’ marquee tax package this year, re-filed his bill that would increase the current SALT cap to $100,000 for single filers and $200,000 for married couples filing jointly. The 2017 tax law during the first Trump administration capped that deduction at $10,000 for federal returns. That, along with other individual provisions of the signature legislation, expire at the end of the year absent congressional action. Even doubling the current threshold “does not really cover the average tax cost for my constituents,” Lawler said in an interview. “We have to negotiate in good faith to get a complete tax bill that addresses a number of issues, including SALT.” Lawler, who is mulling a bid for governor in 2026, said eliminating the cap entirely remains his goal. But his bill reintroduction comes amid negotiations over what can pass through the narrowly divided House, where fiscal hawks are looking for opportunities to tackle the national deficit. “This is a first step in trying to help alleviate the tax burden and provide real tax relief to New Yorkers,” he said. “But it’s a first step, because the bigger picture is that New York State needs to change course.” Lawler is one of a handful of Republican lawmakers from high-tax states who will meet with President-elect Donald Trump at his Mar-a-Lago estate in Florida this weekend. The sit-down could serve as an opportunity to press Trump and those in his orbit for a bigger increase to the SALT limit than offered by his advisers, who have looked at simply doubling the limit. The other lawmakers attending include Reps. Nicole Malliotakis (R-N.Y.), Nick LaLota (R-N.Y.), Andrew Garbarino (R-N.Y.), Tom Kean (R-N.J.), and Young Kim (R-Calif.). Lawler and others have said some change to the SALT cap is a prerequisite for their support for the overall tax package. |
