House Republicans in favour of increasing the state and local tax (salt) deduction cap said there was “still some work” after the group flocked with speaker Mike Johnson (R-La.) for a key meeting on the issue of the controversy Wednesday afternoon.
Collecting marked the first major conversation on salt relief as GOP leadership focuses on next week's meeting and advances the bill's Methods and Means Committee portion.
Rep. Nick Larota (RN.Y.), one of the most prominent members of salt relief, discussed “specific numbers” at the rally, but said he “doesn't think of any offers.” Sources told Hill that “no official numbers” or “officials” were offered, but the group discussed “policy and political needs” for a higher salt deduction cap.
“I think there's a bit more dialogue,” Larota said.
The numbers are not agreed, but Republicans looked into what is unacceptable to them. Rep. Nicole Malliotakes (RN.Y.) said he “we're not going to cut that” by increasing the salt deduction cap to $25,000.
After leaving the meeting, speaker Mike Johnson (R-La.) said he had “still” settled on the new number on the deduction cap, but “hears invaluable input from the salt members and fully understands their priorities.”
“We are trying to take it and find a consensus on the right numbers.
Despite his optimistic tone, there was some frustration at the meeting. Larota said there was a “strength fellowship” during the meeting, referring to “different personalities, different priorities” within the House GOP conference.
Two sources told Hill he was particularly unhappy with Rep. Claudia Tenney (RN.Y.), a salt relief advocate sitting on the Ways and Means committee. One source said Tenny was “trying to put it down.” [SALT caucus members] Check it out a bit” and “say it to be realistic.”
“Claudia was as counterproductive as you could,” the second source said.
The hill reached Tenny's office for comments.
Many members seeking salt relief, including Lalota, Tenney, Malliotakes and representatives Mike Lawler (RN.Y.), Andrew Garbarino (RN.Y.), Young Kim (R-Calif.), and Nick Langworthy (RN.Y.), attended the meeting. Rep. Elise Stefanik (RN.Y.) also attended. The group met with Johnson and Jason Smith (R-Mo.), chairman of the Houseways and Means Committee.
Lawmakers have convened as leadership is about to hold a meeting next week to complete and advance a partial bill on the Methods and Means Committee, which is full of President Trump's legislative priorities. On Tuesday, Johnson said he hopes the rest of the markup will take place next week as it appears to be clearing the entire package at home by Memorial Day.
However, the plan is a problem as members are in conflict over salt relief. Mario Takis said holding markup next week would be “tight” given the amount of progress, but that could “probably” happen.
“Obviously we have a goal and we hope to get there by next week,” she added. “But it depends on the speaker, it depends on the chairman, it exceeds my salary grade.”
After the meeting, Johnson said it was his “expectation” that markup would take place next week.
Mario Takis briefly explained the Methods and Means Committee regarding Thursday Wednesday afternoon conversations, saying, “Look at what the other members of the committee say.”
As Republicans in the Blue Tax State push for salt easing, the GOP deficit Hawks have opposed the rise in caps and raised concerns about how such policies will affect the goal of neutralizing the ultimate Trump Agenda bill's deficit.
“Maybe it's because I don't want to subsidize high-tax, blue-state jurisdictions,” said Rep. Chip Roy (R-Texas) when asked why he was opposed to increasing the cap. “Maybe it's because you can do math… if you lift the cap to $100,000, how much does it cost? It's over a trillion dollars. So, if the same person says, you have to extend the tax cuts and make them permanent, but you can't touch Medicaid, but lift the salt cap and show us your board outfit.”
Johnson and Smith need to weigh those conflicting stances and find a way forward to get the package above the finish line.
The discussion about salt relief has been underway since 2017 when Trump's tax package, which expires this year, placed a $10,000 deduction cap on salt. Since then, Republicans and Democrats representing the blue state with high taxes have pushed for increased caps and have put in place laws that raise thousands of dollars.
For example, Roller introduced a bill in January that would increase the salt deduction cap to $100,000 for a single filer and $200,000 for married couples who file jointly. Meanwhile, Lalota has a bill that will allow a single filer to raise the cap to $15,000 and raise it to $30,000 for those married people submitting together.
If the salt cap is not extended, taxpayers have the ability to deduct income from all eligible state and local income, sales, property taxes and foreign income taxes. According to Overview from Penn Wharton in February 2024such outcomes cost an additional $1.2 trillion.
With plans for next week's markup looming, Salt Caucus Republicans recognize the tenuous nature of budget settlement negotiations, but hope that their priorities will be reflected in the final bill.
“People explained that work and means work is very similar to Rubik's Cube or mall's bang game. Solving one problem leads to another. “I'm grateful for the hard work they have to do to get a grasp of all the different variables in tax law. Of course, salt is the most important thing to me.”
