Latest news with #SALT-y
New York Post
10 hours ago
- Business
- New York Post
NY reps warn Senate version of ‘big, beautiful' bill will be ‘dead on arrival' if SALT cap lowered to $10K
They're getting SALT-y. Blue state Republican reps railed against rumored Senate plans to lower the state and local tax deduction (SALT) cap back down from the House-negotiated level of $40,000 to its current $10,000 threshold — vowing that it will be 'dead on arrival.' Ahead of the Senate Finance Committee's release of its text for its modifications to the One Big Beautiful Bill Act, reporting from Punchbowl News indicated that the panel planned to chop down the SALT increase as a placeholder while negotiations play out. The official text is slated to drop Monday evening, but multiple New York reps preemptively dubbed SALT pareback a dealbreaker. 'I have been clear since Day One: sufficiently lifting the SALT Cap to deliver tax fairness to New Yorkers has been my top priority in Congress,' Rep. Mike Lawler (R-NY) said in a statement. 4 Rep. Mike Lawler had emerged as one of the top hardliners in the SALT negotiations. Getty Images 'After engaging in good faith negotiations, we were able to increase the cap on SALT from $10,000 to $40,000. That is the deal, and I will not accept a penny less. If the Senate reduces the SALT number, I will vote NO, and the bill will fail in the House.' Lawler doubled down on X, writing, 'Consider this the response to the Senate's 'negotiating mark': DEAD ON ARRIVAL' with a meme of Steve Carell as Michael Scott from 'The Office' shaking his head. The House passed the One Big Beautiful Bill Act last month, but the megabill next needs to clear the Senate and then survive the House again before it can get to President Trump's desk. Unlike the House, the Senate does not have any Republicans elected from high-taxed blue states where SALT is a pressing issue. Many Senate Republicans have openly grumbled over the inclusion of a SALT hike. 4 President Trump has been prodding congressional Republicans to send him the One Big Beautiful Bill Act to sign. Getty Images 'I think at the end of the day, we'll find a landing spot. Hopefully that will get the votes we need in the House, a compromise position on the SALT issue,' Senate Majority Leader John Thune (R-SD) told 'Fox News Sunday,' indicating that there isn't an appetite in the upper chamber for a large SALT cap hike. The House is home to the SALT Caucus, which includes blue state Republicans who have conditioned their support of the One Big Beautiful Bill Act on a SALT cap hike. 'The $40,000 SALT deduction was carefully negotiated,' Rep. Nicole Malliotakis (R-NY) said in a statement. 'For the Senate to leave the SALT deduction capped at $10,000 is not only insulting but a slap in the face to the Republican districts that delivered our majority and trifecta,' she added. 'We have members representing blue states with high taxes that are subsidizing many red districts across the country.' 4 Rep. Nicole Malliotakis is the sole Republican congresswoman who represents part of New York City. Getty Images Republican SALT Caucus Co-Chairs Reps. Young Kim (Calif.) and Andrew Garbarino (NY) also warned that the leaked draft is 'putting the entire bill at risk.' 'We have been crystal clear that the SALT deal we negotiated in good faith with the Speaker and the White House must remain in the final bill,' they said in a joint statement. 'The Senate should work with us.' Given the narrow 220 to 212 House GOP majority, leadership in the lower chamber cannot afford SALT-related defections. At most, House leadership can only afford three defections if there's full attendance. Meanwhile, passage of the One Big Beautiful Bill Act in the Senate has been complicated by fiscal hawks who have demanded that the megabill have less of an impact on the deficit. 4 Senate committees are starting to roll out their revisions to the One Big Beautiful Bill Act. AP The megabill is projected to increase the deficit by $3 trillion over the next decade, according to an estimate from the Congressional Budget Office. Senate Republicans are also keen on exploring ways of making certain temporary business tax cuts in the package permanent. SALT emerged as a problem for blue state lawmakers after Republicans imposed a $10,000 cap on it in 2017 as part of the Tax Cuts and Jobs Act. The cap was intended to help pay for other provisions of the bill. A spokesperson for the Senate Finance Committee declined to confirm whether or not the lowered SALT cap is in the panel's draft of the megabill. 'Everyone will get accurate info when bill text is released,' the spokesperson said.
Yahoo
07-05-2025
- Politics
- Yahoo
5 blue-state Republicans willing to sink tax bill over state, local deduction
A block of five Republicans from suburban districts is setting itself apart from the larger group of Republicans who want to raise the controversial state and local tax (SALT) deduction cap. The lawmakers are saying they're prepared to vote no as a group on the wide-ranging tax and spending cut package key to President Trump's agenda if they don't get the raise they want. The group consists of Reps. Andrew Garbarino (N.Y.), Nick LaLota (N.Y.), Mike Lawler (N.Y.) Young Kim (Calif.) and Thomas Kean (N.J.) — Republicans from wealthier suburban districts of major U.S. metropolitan areas, where higher property taxes make the increased cap especially valuable to taxpayers. 'Those are the five of us who are most SALT-y, most resolved to withhold our votes until we get an accommodation from our party,' LaLota told reporters on Tuesday. 'Folks who are on the peripheries of that have a voice, but we're the ones who are willing to vote no if the time requires it.' 'The five of us have discussed our own different needs … but we recognize that our strength is in numbers, and the more we're able to stick together, the more we'll be able to answer the call for all of us,' he added. Garbarino listed the same five Republicans as LaLota did Tuesday, saying the group is 'really sticking together on this' since their districts have a similar makeup and stand the most to lose from a lower cap. He added that Rep. Elise Stefanik (R-N.Y.) — who was President Trump's pick for United Nations ambassador before she withdrew earlier this year and who said over the weekend that she was 'strongly considering' running for New York governor — has become engaged on the issue. 'She voted no against the tax package because of SALT ten years ago, and she's been involved in discussions. She understands that this is a big issue for New York, and she wants to see it righted,' Garbarino told The Hill. The group of five is set apart from other SALT caucus members from both parties, including Reps. Josh Gottheimer (D-N.J.), Nicole Malliotakis (R-N.Y.) and Tom Suozzi (D-N.Y.). Malliotakis is from a New York City district that has a different property tax scheme from the one in the suburbs that makes a higher SALT cap more desirable, LaLota said. 'The New York suburbs … just require a higher cap and more SALT,' he said. Suozzi and Gottheimer are also unlikely to vote for a tax bill attached to Trump's broader legislative agenda, which includes steep spending cuts to social safety net programs. Garbarino said the group isn't seeking a complete revocation of the cap, as was the case prior to Republicans' 2017 tax law, due to the fact that the alternative minimum tax (AMT), which is a separate tax provision, kicks in at a level that makes an unlimited SALT deduction unnecessary. 'We do agree that a cap is necessary,' he said. 'You don't need unlimited, because … AMT is going to step in and hit people that would be benefitted by unlimited anyway.' LaLota said Tuesday that the suburban SALT block had discussed and agreed to a floor for the cap increase below which they would vote no on the GOP bill, though he declined to say what that number was. Republicans on House committees are meeting this week and next to decide on specific tax provisions and budget cuts that they want as part of their 'big, beautiful bill,' to be passed through reconciliation, a procedure that allows a party-line vote and avoids a potential filibuster from Democrats in the Senate. The most contentious markups — which are set for the Agriculture and Energy and Commerce committees, along with the tax-writing Ways and Means Committee — haven't happened yet. The Energy and Commerce Committee is instructed to reduce the deficit by $880 billion, much of which is expected to come from Medicaid, and the Agriculture Committee is instructed to reduce the deficit by $230 billion, which could come from the food stamps program meant to help poorer Americans. The Ways and Means Committee is working to extend the $4.6 trillion Trump tax cuts while working in a number of additional tax cuts promised by President Trump while campaigning last year. They are instructed not to add more than $4.5 trillion to the deficit, making their task a difficult one, though they are expected to be helped by adjustments to the accounting baseline in the Senate. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to The Hill.
The Hill
07-05-2025
- Politics
- The Hill
5 blue-state Republicans willing to sink tax bill over state, local deduction
A block of five Republicans from suburban districts is setting itself apart from the larger group of Republicans who want to raise the controversial state and local tax (SALT) deduction cap. The lawmakers are saying they're prepared to vote no as a group on the wide-ranging tax and spending cut package key to President Trump's agenda if they don't get the raise they want. The group consists of Reps. Andrew Garbarino (N.Y.), Nick LaLota (N.Y.), Mike Lawler (N.Y.) Young Kim (Calif.) and Thomas Kean (N.J.) — Republicans from wealthier suburban districts of major U.S. metropolitan areas, where higher property taxes make the increased cap especially valuable to taxpayers. 'Those are the five of us who are most SALT-y, most resolved to withhold our votes until we get an accommodation from our party,' LaLota told reporters on Tuesday. 'Folks who are on the peripheries of that have a voice, but we're the ones who are willing to vote no if the time requires it.' 'The five of us have discussed our own different needs … but we recognize that our strength is in numbers, and the more we're able to stick together, the more we'll be able to answer the call for all of us,' he added. Garbarino listed the same five Republicans as LaLota did Tuesday, saying the group is 'really sticking together on this' since their districts have a similar makeup and stand the most to lose from a lower cap. He added that Rep. Elise Stefanik (R-N.Y.) — who was President Trump's pick for United Nations ambassador before she withdrew earlier this year and who said over the weekend that she was 'strongly considering' running for New York governor — has become engaged on the issue. 'She voted no against the tax package because of SALT ten years ago, and she's been involved in discussions. She understands that this is a big issue for New York, and she wants to see it righted,' Garbarino told The Hill. The group of five is set apart from other SALT caucus members from both parties, including Reps. Josh Gottheimer (D-N.J.), Nicole Malliotakis (R-N.Y.) and Tom Suozzi (D-N.Y.). Malliotakis is from a New York City district that has a different property tax scheme from the one in the suburbs that makes a higher SALT cap more desirable, LaLota said. 'The New York suburbs … just require a higher cap and more SALT,' he said. Suozzi and Gottheimer are also unlikely to vote for a tax bill attached to Trump's broader legislative agenda, which includes steep spending cuts to social safety net programs. Garbarino said the group isn't seeking a complete revocation of the cap, as was the case prior to Republicans' 2017 tax law, due to the fact that the alternative minimum tax (AMT), which is a separate tax provision, kicks in at a level that makes an unlimited SALT deduction unnecessary. 'We do agree that a cap is necessary,' he said. 'You don't need unlimited, because … AMT is going to step in and hit people that would be benefitted by unlimited anyway.' LaLota said Tuesday that the suburban SALT block had discussed and agreed to a floor for the cap increase below which they would vote no on the GOP bill, though he declined to say what that number was. Republicans on House committees are meeting this week and next to decide on specific tax provisions and budget cuts that they want as part of their 'big, beautiful bill,' to be passed through reconciliation, a procedure that allows a party-line vote and avoids a potential filibuster from Democrats in the Senate. The most contentious markups — which are set for the Agriculture and Energy and Commerce committees, along with the tax-writing Ways and Means Committee — haven't happened yet. The Energy and Commerce Committee is instructed to reduce the deficit by $880 billion, much of which is expected to come from Medicaid, and the Agriculture Committee is instructed to reduce the deficit by $230 billion, which could come from the food stamps program meant to help poorer Americans. The Ways and Means Committee is working to extend the $4.6 trillion Trump tax cuts while working in a number of additional tax cuts promised by President Trump while campaigning last year. They are instructed not to add more than $4.5 trillion to the deficit, making their task a difficult one, though they are expected to be helped by adjustments to the accounting baseline in the Senate.
