Members of the House SALT Caucus, who have threatened to hold back from supporting President-elect Donald Trump's agenda unless the state and local tax (SALT) deduction cap isn't raised, are meeting with him Saturday to discuss their concerns.
Rep. Mike Lawler, R-N.Y., one of those attending this weekend's meeting, has been firm on his opinion on raising the cap on SALT, saying that he "will not support a tax bill" that does not make that happen, reports The Hill.
"The objective certainly is to go in as a unified front, those of us in these states, these districts that are most acutely impacted by the cap on SALT, and have a discussion with the president," said Lawler.
Lawler told The Hill he does not expect a deal this weekend, but he believes negotiations will continue through the work for the reconciliation bill.
He also has endorsed Trump's call for a single bill rather than two separate bills, which has been called for by Senate leaders and the Freedom Caucus.
Opposition from only a few House Republicans who want the SALT cap raises could hold up legislation Trump is seeking to push his tax, border, and energy policies through by using a special party-line reconciliation process that will not require the need to seek votes from Democrats.
According to Reuters, the SALT deduction allows taxpayers who itemize deductions to reduce up to $10,000 of property, sales, or income taxes already paid to state and local governments, which allows them to reduce their federally taxable income.
The limit applies to tax years from 2018 to 2025 and is set to expire after this year. The deduction allows taxpayers in high-tax states and higher-income filers to avoid double taxation.
Some Republicans, however, warn about the impacts on the budget if the SALT cap is lifted.
One Republican commented that party members in blue states are also looking at the total tax package, as well as at an alternative minimum tax and a version of the SALT cap for corporations.
The SALT Caucus, meanwhile, does have a great deal of leverage with the tight GOP majority in the House but is entering Saturday's meeting with a proposal for a raise limit on the tax break, rather than a termination of it.
This week, Lawler refiled legislation to increase the SALT cap to $100,000 for single filers and $200,000 for joint filers, to stop what opponents say is a "marriage penalty' with the law.
There have also been more modest proposals to double the SALT cap from $10,000 to $20,000.
The Committee for a Responsible Federal Budget estimated this week that increasing the cap to just $15,000 for individuals and $30,000 for joint filers could result in a deficit of as much as $450 billion.
Meanwhile, Rep. Nick LaLota, R-N.Y., a SALT Caucus member, said the cap popped up in a GOP planning meeting on the reconciliation. Numbers were not discussed, but it was mentioned that the matter is a priority in the House and for the Trump administration.
He added that the number of bills for Trump's agenda is not on his list of priorities.
"That we have a reasonable increase in a SALT deduction is my top priority, and so when I can achieve my top priority, I'm not going to be a stickler on other things that are less or not important to me," LaLota commented.
Reps. Young Kim, R-Calif., Tom Kean Jr., R-N.J., Andrew Garbarino, R-N.Y., and Nicole Malliotakis, R-N.Y., are also expected to join in Saturday's meeting.
Trump has been meeting with House Republicans this weekend at his Mar-a-Lago estate, including with members of the House Freedom Caucus on Friday. He also plans to meet with committee chairs and other caucus leaders Sunday.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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