Republicans Threaten to Derail Trump’s Tax Cuts
A group of influential House Republicans from high-tax states is ready to throw a wrench in President-elect Donald Trump’s plans for major tax cuts unless their demands are met. Led by Rep. Nick LaLota from New York, this bloc of five lawmakers is adamant about increasing the amount that constituents can deduct from federal income taxes to account for state and local taxes already paid.
LaLota: $20,000 Cap is a Nonstarter
LaLota, in a recent interview with CNBC, voiced his dissatisfaction with the proposed $20,000 cap, labeling it as “almost laughable” and “way too low to earn our vote.” This sentiment is shared by the 16 members of the congressional state and local tax caucus who recently met with Trump at Mar-a-Lago. Trump assured them of his support in raising the SALT cap but requested a specific figure that would guarantee their backing for his broader tax package.
Republican Bloc Plans to Oppose Tax Cut Package
LaLota, along with Reps. Mike Lawler, Tom Kean Jr., and Young Kim, intends to use their collective strength to oppose any Trump tax cut package that doesn’t address their concerns regarding the SALT cap. With a narrow majority in the House, these five lawmakers could effectively block Trump’s legislative agenda if their demands are not met.
Concerns Over SALT Cap Hike
Despite securing Trump’s support for a SALT cap increase, the larger caucus faces opposition from fellow Republicans who argue that raising the cap would primarily benefit wealthier Americans. Additionally, concerns about the potential cost implications of lifting the cap have been raised, with estimates suggesting that households in the top 20% income bracket would be the primary beneficiaries.
Amidst these debates, Rep. Garbarino emphasized the struggles of his middle-class constituents in high-cost areas like Long Island. He highlighted the impact of the current SALT cap on blue-collar workers, first responders, and teachers, stressing the need to rectify this situation.
As negotiations continue, the SALT caucus is exploring various options to ensure that any changes to the cap benefit the middle class. LaLota proposed two potential solutions: raising the cap to a specified amount and doubling it for joint filers, or completely removing the cap but limiting deductions to households below a certain income threshold. The path forward remains uncertain as lawmakers navigate these complex tax policy discussions.
