Republicans from NY and NJ are pushing to raise the SALT deduction cap significantly, aiming for relief for taxpayers in high-tax states.
These lawmakers recently met with President Trump in Florida to discuss their ideas. They’re eager to find ways to help working and middle-class families in their states. Rep. Nicole Malliotakis mentioned they’re crunching numbers to see how to make this happen.
Malliotakis also pointed out that local leaders need to step up. She questioned why New York City’s property taxes aren’t capped like other municipalities. She believes that if state and local governments manage taxes better, it could lead to more deductions for residents.
The current SALT deduction cap was set by Trump’s 2017 tax law, and many feel it’s outdated. Rep. Jeff Van Drew emphasized that inflation has made the $10,000 cap feel much lower now. He argued that it should be at least doubled to keep up with rising costs.
Some lawmakers have even suggested raising the cap to $60,000 for individuals and $120,000 for couples. Others, like Rep. Andrew Garbarino, think it should be eliminated entirely. The debate is heating up, with various opinions on what the ideal cap should be.
Rep. Claudia Tenney mentioned that some are even talking about a cap as high as $200,000. However, she’s cautious about being too influenced by budget offices. The goal is to find a number that works for middle-class families, ideally indexed to inflation.
While it’s uncertain if Democrats will support these changes, the Republicans are optimistic. They believe they can gather enough votes in the House and Senate to push this through. Malliotakis reassured that this isn’t just a tax cut for the wealthy; it’s about helping everyday people.
The discussions are ongoing, and there’s a lot of work ahead. But the NY and NJ GOP members are determined to make their voices heard in this tax reform effort. They see themselves as a driving force in shaping the future of SALT deductions.
