Despite New York Republican leaders claiming that amount is terribly inadequate, House Republicans intend to treble the state and local tax (SALT) deduction threshold to $30,000 as part of their goal to pass President Trump’s “big, beautiful” agenda package.
The House Ways and Means Committee circulated a draft that would increase the current $10,000 SALT cap to $30,000 for people with taxable yearly incomes of $400,000 or less.
The SALT cap would only rise to $15,000 for married people filing separately with taxable incomes of $200,000 or less.
State income taxes, property taxes, and other local taxes can be written off on federal returns thanks to SALT.
Four Republicans from New York criticised a proposed $30,000 SALT deduction amount last week, calling it “insulting.”
In their statement, Representatives Mike Lawler, Elise Stefanik, Andrew Garbarino, and Nick LaLota added, “It’s not just insulting – it risks derailing President Trump’s One Big Beautiful Bill.”
“New Yorkers already send far more to Washington than we get back, unlike many so-called ‘low-tax’ states that depend heavily on federal largesse,” they continued. “It’s a matter of fairness. We reject this offer.”
The four Republicans from Empire State could defeat the legislation by voting “no,” since Republicans now control a 220–213 majority in the House.
One of the most divisive issues among House Republicans as Trump’s flagship tax bill was being draughted was SALT.
Republicans imposed a $10,000 SALT deduction cap in 2017 when Congress passed Trump’s Tax Cuts and Jobs Act in order to partially offset the expenses of other tax cuts.
The $10,000 SALT cap and significant tax benefits from the 2017 law are scheduled to expire after 2025 if Congress does not take further action.
Some Republicans, including Stefanik, voted against the SALT cap at the time because it disproportionately affected blue areas with higher taxes.
Under former President Joe Biden, Democrats tried to increase the SALT deduction in previous versions of the “Build Back Better” package, which eventually evolved into the Inflation Reduction Act. In the end, those attempts were unsuccessful.
“This is awful.” In response to the GOP plan, Long Island Representative Tom Suozzi (D-NY) stated Monday that, “It’s a direct contradiction of the President’s September 17th campaign promise on Long Island to ‘get SALT back.”
“It’s obvious that Republican leadership is trying to drive people out of New York and other high-tax states.”
Trump backed initiatives to boost the SALT deduction last year, and he has remained in favour of raising the ceiling.
For months, the GOP struggled to agree on a specific amount to raise the cap, and several House Republicans from deep-red states have voiced their opposition to the attempt.
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This week, several House GOP committees are presenting their draft versions of the “big, beautiful” measure.
The Energy and Commerce Committee unveiled a plan on Sunday night to overhaul Medicaid, including imposing a work requirement, in order to cut expenditure by roughly $900 billion over the next ten years.
According to House Republican leadership, the measure will eliminate taxes on tips, Social Security, and overtime compensation in addition to extending the 2017 Tax Cuts and Jobs Act, some of which are scheduled to expire at the end of the year.
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Increased funding for defence, energy development, and border security will also be included in the measure. To help pay for it, Republicans are considering cutting expenditure by at least $1.5 trillion.
House Speaker Mike Johnson (R-La.), who had originally targeted Memorial Day as the deadline for passage, is now trying to have the bill on Trump’s desk by July 4.
