Blue-state Republicans discuss homeowner tax break with Trump during meeting

House representatives from New York, New Jersey, and California are visiting Mar-a-Lago with the aim of persuading Trump to reinstate an important tax deduction.

Blue-state Republicans discuss homeowner tax break with Trump during meeting
**NEW YORK** — Rep. Mike Lawler is leveraging his political influence in the battle over a significant tax deduction, committing to months of negotiations that are set to intensify on Saturday when he and other blue-state Republicans confer with President-elect Donald Trump.

This media-savvy moderate, who recently secured reelection as a Republican in a predominantly Democratic suburb of New York, would gain considerable acclaim in his district if the discussions lead to Trump lifting the cap on the state and local tax deduction, commonly known as SALT.

The greater the increase in the cap, the better his prospects appear, especially as he considers a run for New York governor.

Lawler is not alone in this endeavor.

House members from New York, New Jersey, and California—states where property taxes can easily surpass the current $10,000 cap for middle-class homeowners—will join him this weekend at Trump's Mar-a-Lago transition headquarters to push for tax relief. These battleground representatives understand that the fate of SALT could significantly impact their midterm campaigns. Conversations with six members from the three states revealed their strategy.

They intend to remind Trump of his campaign pledge to "get SALT back," assert that the deduction serves middle-class voters in crucial states, and even appeal to him as a fellow New York property owner.

“The reality is that we’re going to lift the cap on SALT, period,” Lawler stated to PMG following the reintroduction of a bill aimed at increasing the deduction limit to $100,000 for single filers and $200,000 for married couples filing jointly.

“First of all, if no tax bill passes, SALT comes back unlimited,” he explained. “So the incentive is on everybody to negotiate in good faith over the entirety of the tax bill.”

The so-called SALT Republicans believe they have a strategic advantage as they confront GOP colleagues from across the nation who view the deduction as a benefit for the wealthiest states.

They indeed have the numbers on their side. House Speaker Mike Johnson enjoys a 219-seat majority, only one seat above the threshold required to pass legislation.

Trump’s campaign commitment regarding SALT—especially with the House majority at stake—would reverse part of his 2017 Tax Cuts and Jobs Act, although specifics on that reversal remain unclear.

“President Trump received a historic mandate from the American people to Make America Wealthy Again,” transition spokesperson Karoline Leavitt stated. “He will work across the political spectrum to deliver on his agenda for the American people.”

As the returning president's signature tax package nears its expiration at the end of the year, the renewal debate involving trillions in tax cuts, particularly for corporations and wealthy individuals, will prominently feature the future of SALT.

SALT Republicans are not publicly indicating their target as they prepare for the Mar-a-Lago meeting.

“We need to move in the direction of higher. Nobody has the best sense of exactly what it will be,” Rep. Chris Smith remarked.

Lawler described simply doubling the cap, as some in the Trump administration have suggested, as “1,000 percent” inadequate.

What is clearer is that a complete restoration of the deduction—which Democrats are advocating for—is likely off the table.

“I think we need to be reasonable and recognize that it’s not going to be unlimited,” Rep. Nicole Malliotakis emphasized. “It needs to be targeted to the middle class.”

House Minority Leader Hakeem Jeffries and the Democrats will have considerable sway, holding 215 seats. However, the SALT Republicans will possess greater influence as Johnson seeks to maintain unity within his caucus, given that Republican leaders plan to utilize a legislative tactic requiring only GOP votes. If they lose support, the GOP risks losing its tax bill.

In 2017, nearly all of the 12 Republicans who opposed Trump's tax package did so primarily because of the SALT deduction limit.

“I didn’t vote for that tax cut. I voted against it on behalf of SALT,” Rep. Darrell Issa reflected on the previous vote, adding, “I come there with my record of feeling that there was a better way to do it.”

Earlier this week, several SALT Republicans met on Capitol Hill with members of the Ways and Means Committee tasked with writing the tax code. Little progress seemed evident from the private discussions, other than the acknowledgment that this debate could become contentious, as tax relief for one region might lead to increased burdens elsewhere.

Rep. Nick LaLota of New York compared the situation to a game of “whack-a-mole.” He joins several SALT advocates in tempering expectations ahead of the forthcoming Trump meeting.

“As you lower taxes in one area, that potentially has the effect of increasing taxes in another area,” he explained in a Thursday interview, noting the “Rubik’s cube sort of approach to the tax code,” and the recognition that SALT Republicans are set to achieve some degree of success regarding SALT.

LaLota from Long Island and Lawler from the Hudson Valley are prominent battleground Republicans advocating for an increase in the cap.

On the Democratic front, frontline Rep. Tom Suozzi of Long Island has long championed the cause, expressing his intention to leverage his reappointment to the powerful Ways and Means Committee towards this effort. Newly elected Rep. Laura Gillen of Long Island emphasized her commitment to a bipartisan solution for SALT in her initial letter to congressional leadership. Additionally, Rep. Pat Ryan of the Hudson Valley has made clear that Democrats should be included in the Mar-a-Lago summit, stating he's prepared to attend himself.

New York Governor Kathy Hochul, a Democrat aiming for reelection next year, is placing the spotlight on the New York House GOP, holding them responsible for the cap that costs New Yorkers up to $12 billion annually.

“Republicans have drained billions directly from the pockets of their own constituents, and now it’s time for them to deliver,” she said. “No excuses. No half measures. It's all or nothing — New Yorkers deserve a full repeal.”

In response, GOP representatives have frequently criticized Hochul regarding her perceived impact on taxpayers.

“We wouldn’t need SALT relief if the mayor and the governor didn’t abuse taxpayers,” Malliotakis stated.

“Kathy — you are the worst Governor in America,” Lawler declared on X, as he contemplates a challenge to Hochul for governor in 2025. He criticized her for contributing to New York's high tax burden and significant outmigration.

Yet Lawler has been somewhat reticent regarding the potential impact of the SALT fight on his political aspirations.

He is navigating the balance between loyalty to the MAGA movement's founder and the expectations of the more liberal electorate north of New York City while seriously considering a gubernatorial run. Retaining SALT is where he intends to make his next stand.

”It’s not about my political career or what I may do in the future,” Lawler asserted. “This is a top priority for me and my constituents.”

Mia McCarthy and Ry Rivard contributed to this report.

Mark B Thomas for TROIB News