GOP divided over lifting SALT cap
Rep. Mike Lawler, R-NY, joins ‘Sunday Morning Futures’ to debate the Trump assembly with blue state Republicans over lifting the SALT cap and NYC congestion pricing.
President-elect Donald Trump is giving Republicans his blessing to barter on a key tax that would show essential to the GOP’s negotiations for a large conservative coverage overhaul subsequent 12 months.
Trump met with a number of totally different teams of Home Republicans at Mar-a-Lago over the weekend, together with blue state GOP lawmakers who make up the Home SALT Caucus – a gaggle against the present $10,000 cap on state and native tax (SALT) deductions that primarily have an effect on city and suburban residents in areas with excessive earnings and property taxes, resembling New York, New Jersey, and California.
“I think it was productive and successful,” Rep. Nicole Malliotakis, R-N.Y., mentioned of the assembly. “The president supports our efforts to increase the SALT deduction. He understands that mayors and governors in blue states are crushing taxpayers and wants to provide relief from the federal level.”
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President-elect Donald Trump instructed New York Republicans he would work with them on a variety of priorities (Chip Somodevilla/Getty Pictures)
However Trump additionally signaled he was conscious of the opposition from others within the Home GOP convention, significantly rural district Republicans, who’ve seen SALT deductions as tax breaks for the rich. Earlier than the cap was imposed in 2017, there was no restrict to how a lot state earnings and native property taxes individuals may deduct from their earnings when submitting their federal returns.
“He gave us a little homework to work on, a number that could provide our middle class constituents with relief from the high taxes imposed by our governor and mayor, and at the same time, you know, something that can build consensus and get to [a 218-vote majority],” Malliotakis mentioned.
“I feel we just about know that it’s not going to be a whole lifting of the SALT cap. There’s not an urge for food inside Congress and even amongst American taxpayers to decrease taxes for the ultra-wealthy.
“Our efforts are really targeted to middle-class families, and that’s what we’re focused on in trying to achieve the right balance.”
The present SALT deduction cap has been opposed by New York and California lawmakers for a lot of its existence, since being levied in Trump’s Tax Cuts and Jobs Act (TCJA).
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Trump advised he would change course throughout his second administration as early as September final 12 months, when he posted on Reality Social that he would “get SALT back, lower your taxes, and so much more.”
The discussions are a part of Republicans’ wider talks about passing a large fiscal and conservative coverage overhaul through a course of often known as “reconciliation.”
By decreasing the Senate’s threshold for passage to a easy majority as a substitute of two-thirds, the method permits the social gathering accountable for each homes of Congress and the White Home to cross sure laws supplied it offers with budgetary and different fiscal issues.
Some pro-SALT deduction Republicans, like Rep. Mike Lawler, R-N.Y., had signaled they may withhold help from the ultimate invoice if the cap was not elevated.
Lawler additionally mentioned Trump agreed that SALT deduction caps wanted to be raised.
Home Republicans have just about no room for error with a razor-thin majority from Trump’s inauguration till probably someday in April.
Rep. Mike Lawler mentioned SALT deduction caps had been a “red line” for his help on a price range reconciliation invoice (Tierney L. Cross)
In the meantime, Trump additionally instructed New York Republicans that he would assist them battle their state’s controversial congestion pricing rule that levies an added value to drive in elements of Manhattan.
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“He understands how unfair this is and how it would impact the city’s economy and the people we represent and so we’re currently working with him on legal options to reverse the rubber stamp of the Biden administration,” Malliotakis mentioned. “If there’s a legal option, if there’s a legal option for him to halt congestion pricing, he will.”
“You have, you know, cops, police, firefighters, nurses, the restaurant workers that have to go in at odd hours, and they drive because they don’t feel that the transit system is clean or safe.”
Congestion pricing took impact in New York Metropolis earlier this month.
