On Tuesday, Donald Trump advocated for the repeal of a portion of his landmark tax code, implying that he would want to bring back the state and local tax deduction, or SALT, which he had controversially limited in the 2017 legislation.
Before leaving for Long Island, New York, the former president promised to “get SALT back” and “lower your taxes” if he were to return to the White House in January. This promise was made in a post on Truth Social.
Trump remained vague and unspecific. However, it seems that this is the first time that Trump has advocated for the repeal of a significant component of his most significant legislative accomplishment—legislation that he has also called for the extension of when its primary provisions are about to expire next year.
The federal deduction for state and local taxes, which was formerly unlimited, was capped at $10,000 per filer by the 2017 law. Americans who itemize their deductions and live in high-tax blue states like New York, New Jersey, and California were most affected by the legislation. At the time, Democrats, who control the majority of those areas, reacted vehemently, charging that the GOP was indulging in a culture war through tax policy. Republicans in those states are likewise in favor of lifting the $10,000 maximum.
Trump’s remark was the most recent in a string of seemingly rash policy remarks that have drawn criticism within his party. Republicans have been criticizing Democrats for attempting to raise the $10,000 ceiling, and the majority of them are against expanding the “SALT” deduction.
“I’ve consistently supported lifting the SALT cap. When asked about Trump’s comments by NBC News on Tuesday, Senate Majority Leader Charles Schumer, D-N.Y., responded, “It was, in my opinion, a horrible piece of legislation targeted at the blue states and backed by Donald Trump.”
Schumer has promised to see to it that the SALT cap expires at the end of 2025 if he is still the majority leader the following year.
It is far from certain that a Republican-led Congress will raise the SALT cap, notwithstanding Trump’s remarks. A number of House Republicans prevented their party from supporting a move to increase the SALT deduction, which was advocated by members of the New York GOP, earlier this year.
The reinstatement of the SALT cap, according to conservative tax policy adviser Ryan Ellis, would be a “horrible” policy because the money it generated “paid for a lot of rate cuts” in the 2017 bill.
“It’s okay to keep $10,000. Ellis texted, “It’s fine to deal with the marriage penalty.” “Taking off the cap? a large tax cut for the wealthy that has no positive impact on the economy.
Ellis stated that he thinks Trump “would land where the House’s discourse has evolved, which is sensible and beneficial for all.” Republicans have been discussing changes to the law, according to Ellis.
The Trump team provided no details of his strategy when NBC News asked for them. “President Trump is seeing America’s working men and women getting crushed by Kamala [Harris]’s out-of-control inflationary policies,” said campaign spokesperson Karoline Leavitt in a general statement. In addition to making living more affordable through his pro-growth and pro-energy policies, President Trump will expeditiously advance tax relief for seniors and working individuals.
The first-term congressman from New York, Rep. Mike Lawler, who is running for reelection in a tough area, commended Trump’s comments.
“Lifting the SALT cap has been my top priority ever since I took office.” Lawler posted on X, “I’m happy to hear that the former president Trump now feels the same way.
Former congresswoman Mondaire Jones, his Democratic opponent, claimed the two were untrustworthy.
Jones released a statement that warned, “Don’t fall for this lie.” “We even have a cap on the SALT deduction because of Donald Trump and Mike Lawler, who aided in his election. The goal was to penalize blue states such as New York. Furthermore, Lawler hasn’t taken any action to address it since entering Congress. We must make a shift.
Rep. Josh Gottheimer (D-N.J.) downplayed what Trump said.
“Treasurer Trump increased taxes on hardworking middle-class Jersey households while eliminating SALT. Does he now wish to address the issue he created? And without giving any details? Gottheimer remarked, “It appears that the arsonist is a volunteer with the fire service.”
Liam Donovan, a Republican lobbyist, tweeted a meme to highlight the irony, considering that Trump was the one who initially restricted the SALT deduction:
The plan would increase the already expensive ideas put out by Trump. According to the anti-debt Committee for a Responsible Federal Budget, it would cost $1.2 trillion more to prolong the 2017 tax code if the SALT cap were removed.
Vice President Kamala Harris has not stated her stance on the SALT deduction as a presidential contender, despite the desire of legislative Democrats to increase it. When questioned on Tuesday, her campaign remained silent.