Speaker Mike Johnson (R-La.) mentioned that he anticipates progress on the state and local tax (SALT) credit limits, indicating developments after a recent meeting on Tuesday afternoon.
He explained that the group is awaiting feedback from the Joint Tax Committee (JCT), which serves as the council’s scorekeeper.
“It’s likely to be tomorrow since we need the JCT to finalize the numbers tonight. We’re reviewing various data, so I believe the final assessment will come in tomorrow,” he said.
This optimistic outlook follows a meeting between Johnson, moderate Republicans from high-tax blue states, and JCT staff to dive into one of the complex issues that could impede the GOP’s legislative goals regarding SALT deduction caps.
The House Ways and Means Committee has proposed a $30,000 SALT cap for individuals making under $400,000. Meanwhile, conservative Republicans are advocating for higher deduction limits in light of significant deficits.
On Monday, members of the SALT Caucus proposed a $62,000 cap for single filers and a $124,000 cap for joint filers. This discussion came as the House Ways and Means Committee was engaged in talks surrounding the bill.
Despite the differing viewpoints, SALT Caucus members felt hopeful after the meeting on Tuesday.
“There was a constructive dialogue. More honesty in that room than previously, and while there’s still much to work through, we’re getting closer to specific figures,” remarked Rep. Nick Larota, R-NY. “We’ve discussed various aspects that differ from what we’re currently facing, but we’re far from a consensus.”
Larota also pointed out that the JCT found that the tax elements of Trump’s proposed bill could add $3.7 trillion to the national debt. He suggested that with additional billions at stake, the SALT cap could be adjusted favorably.
“We’re encouraged by current proposals and discussions. There’s still significant leeway within the budget resolution for the bill to pass,” Larota remarked. “I believe this will help address the SALT issue.”
He hold back the specific numbers the group is seeking from the JCT. Earlier in the day, Jason Smith (R-Mo.), chairman of the House Ways and Means Committee, commented that the JCT’s assessment indicates only limited flexibility for additional priorities due to instructions from leadership.
“Our conversation with leadership was productive, but we’re still waiting for more data and insights. There will be more discussions soon,” stated Rep. Mike Lawler (R-NY), another SALT Caucus member. “We’ll keep the dialogue going and see where it heads.”
However, there were moments of tension during the meeting. Rep. Nicole Malliotakis (R-NY), a SALT Caucus member and part of the Ways and Means Committee, was reportedly asked to leave the rally, according to two sources.
Malliotakis advocated for an increase in the SALT deduction cap but found herself at odds with other members when they indicated their support for the $30,000 cap during the committee discussion, which she had previously opposed.
One source claimed Malliotakis attended uninvited on behalf of Smith but was ultimately asked to exit.
In a statement, Malliotakis highlighted her involvement in both the SALT Caucus and the House Ways and Means Committee.
“As a member of the SALT Caucus and Ways and Means Committee, I know they can negotiate all they want, but without my support and committee agreement, no changes will happen,” she stated.
