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Malliotakis challenges Dems to work with GOP on SALT deduction after Trump pledge as NY taxed ‘to death’

Representative Nicole Malliotakis accused House Republicans of overtaxing New Yorkers in the first place and called on Democrats to help expand state and local tax credits.

Malliotakis (R-N.Y.), a member of the House Ways and Means Committee that crafts tax law, was among the Republicans who met with President-elect Donald Trump at Mar-a-Lago on Saturday to strategize on SALT and other issues. He was one of the

“If Democrats care about middle-class families, they should support them,” Malliotakis told the Post after the meeting. “The reason we need SALT relief is because the mayor and governor continue to tax New Yorkers until they die.”

“Governors can easily lower income tax rates, just like the president did at the federal level. They are choosing not to do the right thing, so we are going to provide relief at the federal level. .”

Back in 2017, when President Trump and Congress reformed the tax code through the Tax Cuts and Jobs Act, they chose to cap the SALT deduction at $10,000, which meant that many blue state residents' federal income taxes It meant jumping up.

Representative Nicole Malliotakis is a prominent Republican supporter of SALT reform and serves on the House Ways and Means Committee, the main tax law committee. AP
President-elect Donald Trump dramatically improved his electoral performance in New York during the 2024 election. AP

Lawmakers from New York and other blue states formed the bipartisan SALT caucus to eliminate the cap. President Trump had previously expressed an open stance on this, but he doubled down on it in a meeting with lawmakers on Saturday.

New York Governor Kathy Hochul (Democrat) called repeatedly Governor Malliotakis rejected the request, saying the governor was trying to curry favor with donors.

“There is no appetite within Congress or among American taxpayers to completely eliminate the cap. It would benefit the ultra-wealthy, and we are particularly focused on middle-class families,” Malliotakis said. he said.

He added that lawmakers are broadly considering raising the cap to a minimum of $20,000 and a maximum of $100,000 for individuals. Malliotakis also wants the final number to be indexed to inflation.

“We didn't discuss the specifics. That's part of our homework,” Malliotakis said of the plan.

The congressman blamed New York Poll for raising taxes to such high levels. Ed Reed/Mayoral Photography Office

Complicating the situation is the far-right wing of the House Republican conference, which is not particularly enthusiastic about aiding blue states and is also wary of the potential impact on the budget deficit. Republicans also hold a majority in the House of Representatives.

To make it more plausible, Malliotakis floated the idea of ​​tightening the conditions for the SALT deduction, such as limiting the “property tax portion to a principal residence.”

Possible offsets discussed at Mar-a-Lago included tariffs, reform of SALT rules for businesses, reassessment of refundable tax credits, and broad regulatory rollbacks, Malliotakis said. It is said that

Many House Democrats, including from New York and New Jersey, are rooting for Republicans to win. Dating back to the early days of the Biden administration, they lobbied for SALT reform in the Democrats' Build Back Better package, which was ultimately cut in the final version, renamed the Inflation Control Act.

So far, no Democratic members of Congress have committed to supporting the tax reform proposal. The tax reform proposal would be combined with an extension of the Tax Cuts and Jobs Act and Trump's push to eliminate or at least reduce tips, Social Security and taxes. overtime.

At least one Democrat, Rep. Pat Ryan (D-N.Y.), I pleaded Mr. Trump has called for Democrats to join the talks, including attending Saturday's Mar-a-Lago meeting.

New York Republican pictured at Mar-a-Lago. X/@Niklarota

President Trump is also pushing to combine tax reform with other issues he's focused on, including the border and energy. Senate Republicans almost universally favor two bills.

“I think there is a risk that the tax cuts will completely expire in both bills,” he said, stressing that it would be difficult to get the bills passed.

The meeting between Republican members of the House SALT caucus and President Trump also discussed other issues, including the need for an overhaul of border security and a desire to eliminate congestion charges in lower Manhattan.

Malliotakis and other attendees had previously expressed hope that the Federal Highway Administration under the Trump administration could help repeal the tax, which began on January 3.

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