Rep. Mike Lawler Celebrates Significant Tax Credit Increase

WASHINGTON – Rep. Mike Lawler (R-NY) is marking an 11-hour agreement that brings a 400% increase in state and local tax (SALT) credits, part of President Trump’s “one big beautiful bill.”

“For the middle class, this represents a true win, particularly in places like New York,” Lawler shared in an exclusive interview, noting a change from a $10,000 deduction cap to $40,000 for individual filers. He emphasized that his constituents face the highest tax burdens in the nation due to property and income rates.

It’s predicted that this tax rate will rise by 1% over the next decade.

While no amendments have yet been filed with the House Rules Committee to formally enact these changes, House Majority Leader Steve Scalise (R-La.) has committed to incorporating them, along with adjustments to Medicaid funding and Green Energy Tax Credits.

Republicans from the Hudson Valley held extended meetings for weeks with White House officials, and House Speaker Mike Johnson’s team, alongside Chamber of Commerce members and even Trump, who discussed SALT during a closure meeting on Capitol Hill.

During a Republican Conference gathering, the president remarked, “I know your district better than you,” urging New York politicians not to derail the Republican agenda with a proposed $30,000 SALT cap – a move he warned could jeopardize his 2026 re-election efforts.

“His goal was to push the bill forward,” Lawler reflected on his discussions with Trump, mentioning a subsequent personal call with aides from Congress and the White House.

Lawler has teamed up with Tom Keene (R-NJ) and Young Kim (R-Calif) to place limits on deductions for tax filers earning over $500,000, collaborating with Empire State officials such as Nick La Rota and Andrew Gerbarino.

Both Lawler and Stefanik hinted at the governor’s aspirations, pointing out the Republicans’ plight in restoring full SALT deductions lost since the 2017 Tax Cuts and Jobs Act.

“The SALT deduction might never return – it will likely stay at $10,000,” Lawler commented, citing the Democrats’ hold during the early years of Biden’s presidency as a barrier to increasing tax credits.

“To claim there’s nothing for Hochul to celebrate is a misstep,” he asserted, noting tax cuts that would mark the largest tax reduction in U.S. history. “They can’t even unify their own party.”

“They’re just scams,” he said, directing criticism at Hochul and Senate minority leader Chuck Schumer (D-NY).

“Kathy Hochul hasn’t held Schumer accountable for his failures. We’re seeing a 400% increase. They should be expressing gratitude,” Lawler remarked, calling for Hochul’s resignation.

“Hochul is the worst governor in America. We bear the heaviest tax burden,” he added, highlighting her tax hikes impacting small businesses.

“We do a good job, but it comes at a cost,” he conveyed, discussing how Westchester and Rockland residents are relocating farther north to escape steep property taxes.

“We’re not billionaires because of the SALT bill,” he continued, responding to a Democratic narrative framing the tax package as a boon for the ultra-wealthy.

“We are considered some of the highest-tax counties,” remarked Michael Gragiano, a volunteer firefighter and Clarkstown councillor.

However, some conservatives in the House Freedom Caucus, like Chairman Andy Harris (R-Md.), are still navigating the balance between cutting Green Energy tax credits and Medicaid expenses.

“I don’t believe there’s been much progress on the SALT deal in the past 24 hours; we’re still moving in the right direction,” Harris told reporters.

Yet, Freedom Caucus leaders estimate that approval may take more than a week, as Trump has requested members to come to the White House to address their differences regarding the package.

The bill, undergoing budget adjustments, is likely to pass with a simple majority in both chambers. It’s expected to contribute nearly $4 trillion to the national deficit, largely due to tax cuts, alongside Medicaid reductions and renewable energy incentives tied to the prior administration’s inflation reduction efforts.

“There’s more than seven times the funding available than for those in need,” Rep. Chip Roy (R-Texas) noted about the current Medicaid program. “This will save a lot…and we face a massive deficit if we don’t implement structural reforms.”

The settlement bill allocates millions for national defense and border security.

Lawler and his colleagues have aimed to bolster security spending while preventing drastic cuts to public health services.

“We worked diligently to protect essential services like Medicaid while addressing the system’s exploitation,” he stated, emphasizing “common-sense reforms” to safeguard vulnerable populations such as the elderly, children, and single mothers.

“Is everything perfect? No, but there isn’t any legislation that meets that standard,” he added. “We all need to strive for progress, even if it’s incremental.”