New Yorkers Rage at Senate Meddling With State and Local Tax Deduction, Promising To Sink Trump Spending Bill If Their Demands Aren’t Met

New York lawmakers and their fellow blue state House colleagues are raging against a new proposal from the Senate to keep the current State and Local Tax deduction cap at its current level. The Empire State GOP lawmakers were critical to quadrupling the current cap to $40,000, up from its current $10,000 level. Speaker Johnson had to work with his tax-writing committee and several swing state members from New York, New Jersey, and California — all of whom say their promise to push for a hike in the SALT cap was key to them winning re-election. They eventually settled on $40,000 for those making less than $500,000. It was already a major compromise for those New Yorkers who believed a $100,000 cap for individuals and a $200,000 cap for couples was necessary. On Monday, Punchbowl News first reported that the Senate Finance Committee would keep the $10,000 cap as-is in its version of the One Big Beautiful Bill Act. The Senate’s move is seen as a negotiating tool with House lawmakers, though it did not stop New York Republicans from expressing their deep displeasure on Monday afternoon. One of the New Yorkers most outspoken about the SALT issue, Congressman Mike Lawler, promised on Monday to vote against the final bill if the Senate goes even “one penny” below the previously agreed-upon $40,000 cap. “We were able to increase the cap on SALT from $10,000 to $40,000. That is the deal, and I will not accept a penny less. If the Senate reduces the SALT number, I will vote NO, and the bill will fail in the House,” Mr. Lawler said in a statement. The co-chairwoman and co-chairman of the SALT Caucus Republicans, Congresswoman Young Kim and Congressman Andrew Garbarino, also say that the House version of their tax deal must be left untouched. “We have been crystal clear that the SALT deal we negotiated in good faith with the Speaker and the White House must remain in the final bill,” the lawmakers said in a joint statement on Monday. “Instead of undermining the deal already in place and putting the entire bill at risk, the Senate should work with us.”There have been some internal divisions within the SALT Caucus GOP about exactly how high the cap should be. Congresswoman Nicole Malliotakis, who represents Staten Island and Brooklyn in the House, was originally fine with the $30,000 cap offer from Mr. Johnson. Now, she’s digging in alongside her fellow blue staters to say that anything less than $40,000 is unacceptable. “For the Senate to leave the SALT deduction capped at $10,000 is not only insulting but a slap in the face to the Republican districts that delivered our majority and trifecta,” she said in a statement. “We need to recognize that we have members representing blue states with high taxes that are subsidizing many red districts across the country with constituents who benefit from refundable tax credits despite paying zero in taxes.”The highest-ranking New York House GOP lawmaker, Congresswoman Elise Stefanik, says the Senate number is clearly an attempt to bring House members to the negotiating table for talks. “Everyone knows this 10K number will have to go up. And it will,” Ms. Stefanik wrote in a post on X. “NY Republicans will fight and deliver real tax relief for our overly taxed constituents.”Mr. Johnson previously told the Sun that there is a very “delicate” balance that must be struck between the House and Senate. He has declined to say if he is making clear to senators that they must keep the $40,000 cap where it currently stands in the bill. “What we have said to them is, ‘[Change it] as little as possible,’” Mr. Johnson told the Sun last week of his conversations with the Senate. “I talked about the importance of the delicate balance we have on SALT. We didn’t get into specific numbers.”

New Yorkers Rage at Senate Meddling With State and Local Tax Deduction, Promising To Sink Trump Spending Bill If Their Demands Aren’t Met

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