New York Republicans critical of an unpopular cap on state and local tax deductions are hoping for a friendly reception from President-elect Donald Trump — the man who gutted the deduction as president in 2017 — when they lobby him Saturday at Mar-a-Lago.
Reps. Mike Lawler, Nicole Malliotakis, Nick LaLota and Andrew Garbarino are among those expected to meet with Trump to discuss the so-called SALT deduction cap that’s been excoriated on both sides of the aisle since Trump signed much smaller deduction limits into law during his first term.
While Trump has made allusions in recent months to restoring the so-called SALT deductions, Republican lawmakers who have been vocal about repealing the cap are managing expectations around a full restoration.
“I’ve been very clear, I will not support a tax bill that does not lift the cap on SALT,” Lawler told Spectrum News this week. “Ideally, we would go back to unlimited, but I'm not sure that's realistic as you're negotiating through a tax bill.”
Lawler reintroduced his bill this week seeking a more generous deduction limit — $100,000 for single filers and $200,000 for married couples — as the freshly reelected House Republican weighs his political future. Current law allows for a $10,000 deduction for both.
A separate high-profile attempt led by Lawler to reform SALT for married couples faltered in the House last February, prompting Republicans to accuse Democrats of playing politics with the issue by withholding support for the bill. Multiple lawmakers have introduced or backed measures for SALT reform.
Polling indicates about 75 percent of New Yorkers want to to see the cap raised to some extent, if not eliminated. It's a particularly potent issue in suburban areas of New York City where homeowner populations are large and property taxes are high. Democratic Gov. Kathy Hochul is demanding a full repeal.
“Republicans have failed in restoring the ability of New Yorkers to deduct their state and local taxes,” she said during an interview on PIX 11 Friday night. “It's been in place since Abraham Lincoln was president. It was removed in 2017 under Donald Trump. I'm really hoping that he will keep his promise and not just tweak it up ... [but] restore our ability to have that deduction.”
After the governor made similar comments on social media earlier in the week, New York Republicans — including those poised to meet with Trump on Saturday — immediately piled on.
“You do realize that the reason New York needs SALT relief is because YOU keep taxing New Yorkers to death? Why don’t you just lower income taxes??” Malliotakis posted in response.
In a video taken in front of the U.S. Capitol this week, LaLota said he was among those working to “get a higher deduction of the state and local tax," as he sprinkled generous portions of salt on what appeared to be a balcony floor.
“I'm here spreading the word of our SALT message, bringing it down to Mar-a-Lago this weekend, making sure the president and the House are on the same page,” LaLota said.
