House Republicans are planning to triple the state and local tax (SALT) deduction cap to $30,000 in their plan to pass President Trump’s “big, beautiful” agenda bill, despite New York Republican lawmakers calling that figure woefully insufficient.
A draft circulated by the House Ways and Means Committee and seen by The Post Monday would raise the current $10,000 SALT cap to $30,000 on individuals with taxable annual income of $400,000 or fewer.
For married individuals who are filing separately and have taxable income of $200,000 or fewer, the SALT cap would only increase to $15,000.
SALT allows taxpayers to deduct the cost of their state income taxes, property taxes and other local taxes from their federal returns.
Last week, four New York Republicans bashed a proposed $30,000 SALT deduction figure as “insulting.”
“It’s not just insulting – it risks derailing President Trump’s One Big Beautiful Bill,” Reps. Mike Lawler, Elise Stefanik, Andrew Garbarino and Nick LaLota said in their statement.
“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 added. “It’s a matter of fairness. We reject this offer.”
With Republicans holding a 220-213 advantage in the House, the four Empire State Republicans could tank the legislation by voting “no.”
SALT has proven to be one of the most contentious topics among House Republicans during the drafting of Trump’s marquee tax legislation.
Back in 2017, when Congress passed Trump’s Tax Cuts and Jobs Act, Republicans had capped the SALT deduction at $10,000 to help offset the costs of tax reductions elsewhere.
Without further action from Congress, the $10,000 SALT cap is set to expire after 2025, alongside key tax cuts from the 2017 law.
The SALT cap disproportionately impacted blue states with higher taxes and prompted some Republicans, such as Stefanik, to vote against the measure at the time.
Democrats attempted to jack up the SALT deduction under former President Joe Biden during iterations of the “Build Back Better” package, which later became the Inflation Reduction Act. Ultimately, those efforts failed.
“This is awful. It’s a direct contradiction of the President’s September 17th campaign promise on Long Island to ‘get SALT back,’” Long Island Rep. Tom Suozzi (D-NY) said Monday in response to the GOP plan.
“It’s obvious that Republican leadership is trying to drive people out of New York and other high-tax states.”
Last year, Trump threw his weight behind efforts to raise the SALT deduction and he has continued to support an increase to the cap.
Other House Republicans from deep-red states have come out against the effort, and the party struggled for months to land on a precise number to raise the cap.
Multiple House GOP committees are releasing their plans for the “big, beautiful” bill this week.
On Sunday evening, the Energy and Commerce Committee rolled out a plan to slash about $900 billion in spending over the next decade by reforming Medicaid — including instituting a work requirement.
House Republican leadership says the bill will include an extension of the 2017 Tax Cuts and Jobs Act, key parts of which are set to expire by the end of the year; as well as the removal of taxes on tips, Social Security and overtime pay.
The bill will also call for increased spending on border security, defense and energy exploration. Republicans are eyeing at least $1.5 trillion worth of spending cuts to help pay for it.
House Speaker Mike Johnson (R-La.) is hoping to get the bill to Trump’s desk by the Fourth of July, after initially eyeing Memorial Day as the date for passage.
