Four House Republicans from New York fumed Thursday over what they described as an “insulting” offer from House Speaker Mike Johnson (R-La.) and the lower chamber’s tax policy panel to cap state and local tax (SALT) deductions at $30,000.
Reps. Mike Lawler, Elise Stefanik, Andrew Garbarino and Nick LaLota contend that the proposal presented by Johnson and the House Ways and Means Committee — for inclusion in President Trump’s “big, beautiful bill” — sets the cap too low and could derail the massive reconciliation package, which is critical to implementing the president’s second term agenda.
“We’ve negotiated in good faith on SALT from the start — fighting for the taxpayers we represent in New York,” the lawmakers said in a joint statement.
“Yet with no notice or agreement, the Speaker and the House Ways and Means Committee unilaterally proposed a flat $30,000 SALT cap — an amount they already knew would fall short of earning our support,” they added.
“It’s not just insulting — it risks derailing President Trump’s One Big Beautiful Bill,” the foursome charged.
“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,” the New York Republicans continued. “A higher SALT cap isn’t a luxury. It’s a matter of fairness.
“We reject this offer.”
A spokesperson for the House speaker said the statement from Lawler, Stefanik, Garbarino and LaLota was “missing context,” claiming that the $30,000 figure floated Thursday hasn’t been settled on yet.
“What the Speaker actually said is this is one number among others in ongoing discussions amongst members,” Johnson press secretary Athina Lawson wrote on X.
“I’m not going to handicap it because I’m not exactly sure what [number] that is, but there’s a lot of analysis that’s gone into it,” Johnson said Thursday “And I think we can find the right number that’ll do it and satisfy all the various concerns.”
Sources have told The Post that Republican lawmakers in blue states are seeking a SALT cap between $30,000 and $100,000 to stick in the multi-trillion dollar package.
Lawler has introduced legislation earlier this year that would increase the SALT cap to $100,000 for single filers and $200,000 for married couples.
The current maximum cap for those filing federal returns is $10,000 for individuals and married couples, a level set by Trump’s 2017 Tax Cuts and Jobs Act and scheduled to expire at the end of this year.
Lawler noted during a Fox Business interview last month that if Trump’s first term tax cuts were to expire, the SALT cap would end as well, which would allow for unlimited state and local tax deductions.
Under that scenario, however, federal tax rates would go up and the alternative minimum tax would return – which Lawler argued would be “devastating” for New Yorkers. The House Ways and Means Committee is expected to finalize the tax bill’s provisions next week — with Treasury Secretary Scott Bessent having set a July 4 deadline for passage.
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