House GOP’s Tax Plan Boosts SALT Deduction to $30K, But New York Republicans Demand More

House Tax Plan Proposes Tripling SALT Deduction Cap to $30,000 Amid Criticism from New York Republicans

By Ryan King and Josh Christenson
Published May 12, 2025, 5:45 p.m. ET

In a new development regarding tax legislation, House Republicans have proposed an increase to the state and local tax (SALT) deduction cap, tripling it from $10,000 to a significant $30,000. This plan is being presented as part of President Trump’s broader legislative agenda known as the “big, beautiful” bill. However, some New York Republicans are voicing their discontent, deeming the proposed increase insufficient for their constituents.

Details of the Proposed SALT Increase

According to a draft from the House Ways and Means Committee, the new cap would apply to individuals with a taxable annual income of $400,000 or less. For married couples filing separately, the limit would increase to $15,000 for those earning $200,000 or lower. The SALT deduction allows taxpayers to deduct state income taxes, property taxes, and other local taxes from their federal tax returns, providing significant relief to those in high-tax states.

Criticism from New York Republicans

The proposed SALT cap has faced immediate backlash from four Republican representatives from New York: Mike Lawler, Elise Stefanik, Andrew Garbarino, and Nick LaLota. They have labeled the $30,000 cap as “insulting” and warned that it risks derailing the entire tax reform effort. “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 representatives stated. They emphasized the issue of fairness in distribution and expressed their intent to reject the proposal if it continues unchanged.

Legislative Implications

With the House currently under Republican control with a narrow margin of 220-213, the dissent from New York Republicans could pose a significant hurdle for the administration’s plans. The SALT deduction has long been a contentious issue within the party, especially following the 2017 Tax Cuts and Jobs Act, which originally capped the SALT deduction at $10,000 to help fund tax cuts elsewhere in the legislation.

If Congress does not take further action before the end of 2025, the existing $10,000 cap is set to expire alongside several key tax cuts from the 2017 law. The previous limitation has particularly affected taxpayers in high-tax, blue states, leading to friction within the party’s ranks.

Historical Context and Future Considerations

The Republican Party had previously faced backlash regarding the SALT cap, with some members voting against the 2017 measure due to its implications for taxpayers in high-tax states. Previous attempts by Democrats to increase the SALT deduction as part of the "Build Back Better" initiative under former President Biden also failed.

In the broader context of the current tax legislation, House Speaker Mike Johnson has emphasized the necessity of finding a compromise within the party to deliver on key promises. The GOP’s efforts include plans for extensive spending reductions, an extension of cut provisions from the 2017 tax reforms, and bolstered allocations for national defense and border security.

Conclusion

As the House proceeds with discussions on the proposed tax reforms, the future of the SALT deduction cap remains uncertain. New York’s Republican representatives are planning to mobilize efforts to push for a more favorable limit, reflecting the ongoing challenges within party negotiations over tax policies. The urgency to finalize these proposals is underscored by the administration’s aim to present the finalized bill to President Trump by the upcoming Fourth of July.

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