Republican legislators at odds over tax reduction for wealthiest constituents
The ongoing inability of lawmakers to reach a resolution is contributing to the delay of the GOP megabill, which is filled with President Donald Trump's policy priorities.
TroibNews 
Blue-state Republicans appear poised to finally succeed in their ongoing fight to increase the cap on the state and local tax (SALT) deduction, with support from President Donald Trump and House GOP leaders — but challenges remain.
The primary issue is infighting among SALT Republicans and other GOP lawmakers concerning critical aspects of the proposal. This conflict is delaying the House Ways and Means Committee's efforts to schedule a vote next week on the Republicans' comprehensive tax package. A major point of contention is whether to impose an income cap for those qualifying for the deduction, which is especially beneficial for homeowners in areas with high property taxes.
“I don’t see that there’s a real interest from anybody, Republican or Democrat, in helping millionaires and billionaires,” stated Rep. Nicole Malliotakis, a member of the SALT caucus and Ways and Means. “There’s a lot of opinions on that, but I support some type of income cap, or at a minimum, just targeting to take in middle class families.”
Malliotakis proposed that any plan to lift the existing $10,000 cap on the deduction should target individuals earning “under the $400,000-500,000 range.”
Conversely, several of Malliotakis’s colleagues from some of the wealthiest districts in the SALT caucus vehemently oppose any income cap. They argue that restrictions are already in place. This group includes New York Republicans Mike Lawler, Andrew Garbarino, Nick LaLota, and California's Young Kim, all of whom assert that any tax legislation must provide SALT relief to pass in the House.
“I oppose a 400K income cap because, like the 2017 SALT cap, it hits New Yorkers harder than most Americans,” LaLota remarked.
Garbarino added that “income restrictions on SALT would be redundant and unnecessary.”
Kim expressed a strong determination, stating she’s “not going anywhere until this gets done.”
As discussions continue, top Republicans are increasingly leaning toward an income cap, especially as they navigate demands from fiscal conservatives who oppose an expensive SALT cap increase that would benefit taxpayers in predominantly blue states.
SALT Republicans are awaiting feedback from GOP leaders following last week's discussions.
According to a report from the House Budget Committee in January, House Republicans estimate that raising the SALT cap to $15,000 for individuals and $30,000 for couples could cost around $500 billion relative to extending Trump’s expiring tax cuts.
SALT Republicans have suggested that raising the cap to $25,000 — one figure under consideration — would not be adequate.
Support for an income cap alongside the SALT increase is growing among some in Speaker Mike Johnson’s leadership circle, key Republicans on the Ways and Means Committee, and various White House officials according to sources familiar with the discussions.
Many Republicans aim to focus on the middle class when considering potential changes to avoid high costs and to exclude millionaires and wealthier Americans from benefiting from the tax relief.
Some Republicans have observed that Democrats are preparing to critique GOP lawmakers for allegedly cutting Medicaid and other safety-net programs to fund tax breaks for the affluent.
Johnson has not publicly endorsed an income cap during meetings with SALT Republicans, according to insiders. Nevertheless, it remains a key strategy for limiting costs.
“I get the income cap. I get the cap concept,” remarked Rep. Blake Moore, a member of Johnson’s leadership team and Ways and Means Committee. “I like that. It makes it so we’re targeting support for the middle class.”
However, this would be difficult for lawmakers like LaLota and Lawler, whose districts have historically borne a significant share of state and local taxes from households earning over $500,000, according to IRS data.
In contrast, Malliotakis's New York's 11th district, which includes Staten Island, comprises relatively less affluent taxpayers compared to her New York peers in the SALT caucus.
Malliotakis focused on preserving the relaxed rules implemented in 2017 regarding an alternative minimum tax, which often restricts SALT deductions. She emphasized that returning to stricter minimum tax rules is a non-negotiable point for her and indicated that consensus among her colleagues may be lacking.
“I’m sure that some are trying to use [the AMT] as leverage, but it can’t come back,” she asserted.
When asked about his position on an income cap for SALT, Johnson refrained from commenting directly but noted that he believed an agreement was imminent.
“I haven’t been forecasting where I'm at on this, because I want to allow time for this to work out. But I think we're very close, and we'll get that.”
“We're going to find the equilibrium point on SALT that no one will be totally delighted with, but it'll solve the equation, and we'll get it done,” Johnson told reporters.
Aarav Patel for TROIB News
The primary issue is infighting among SALT Republicans and other GOP lawmakers concerning critical aspects of the proposal. This conflict is delaying the House Ways and Means Committee's efforts to schedule a vote next week on the Republicans' comprehensive tax package. A major point of contention is whether to impose an income cap for those qualifying for the deduction, which is especially beneficial for homeowners in areas with high property taxes.
“I don’t see that there’s a real interest from anybody, Republican or Democrat, in helping millionaires and billionaires,” stated Rep. Nicole Malliotakis, a member of the SALT caucus and Ways and Means. “There’s a lot of opinions on that, but I support some type of income cap, or at a minimum, just targeting to take in middle class families.”
Malliotakis proposed that any plan to lift the existing $10,000 cap on the deduction should target individuals earning “under the $400,000-500,000 range.”
Conversely, several of Malliotakis’s colleagues from some of the wealthiest districts in the SALT caucus vehemently oppose any income cap. They argue that restrictions are already in place. This group includes New York Republicans Mike Lawler, Andrew Garbarino, Nick LaLota, and California's Young Kim, all of whom assert that any tax legislation must provide SALT relief to pass in the House.
“I oppose a 400K income cap because, like the 2017 SALT cap, it hits New Yorkers harder than most Americans,” LaLota remarked.
Garbarino added that “income restrictions on SALT would be redundant and unnecessary.”
Kim expressed a strong determination, stating she’s “not going anywhere until this gets done.”
As discussions continue, top Republicans are increasingly leaning toward an income cap, especially as they navigate demands from fiscal conservatives who oppose an expensive SALT cap increase that would benefit taxpayers in predominantly blue states.
SALT Republicans are awaiting feedback from GOP leaders following last week's discussions.
According to a report from the House Budget Committee in January, House Republicans estimate that raising the SALT cap to $15,000 for individuals and $30,000 for couples could cost around $500 billion relative to extending Trump’s expiring tax cuts.
SALT Republicans have suggested that raising the cap to $25,000 — one figure under consideration — would not be adequate.
Support for an income cap alongside the SALT increase is growing among some in Speaker Mike Johnson’s leadership circle, key Republicans on the Ways and Means Committee, and various White House officials according to sources familiar with the discussions.
Many Republicans aim to focus on the middle class when considering potential changes to avoid high costs and to exclude millionaires and wealthier Americans from benefiting from the tax relief.
Some Republicans have observed that Democrats are preparing to critique GOP lawmakers for allegedly cutting Medicaid and other safety-net programs to fund tax breaks for the affluent.
Johnson has not publicly endorsed an income cap during meetings with SALT Republicans, according to insiders. Nevertheless, it remains a key strategy for limiting costs.
“I get the income cap. I get the cap concept,” remarked Rep. Blake Moore, a member of Johnson’s leadership team and Ways and Means Committee. “I like that. It makes it so we’re targeting support for the middle class.”
However, this would be difficult for lawmakers like LaLota and Lawler, whose districts have historically borne a significant share of state and local taxes from households earning over $500,000, according to IRS data.
In contrast, Malliotakis's New York's 11th district, which includes Staten Island, comprises relatively less affluent taxpayers compared to her New York peers in the SALT caucus.
Malliotakis focused on preserving the relaxed rules implemented in 2017 regarding an alternative minimum tax, which often restricts SALT deductions. She emphasized that returning to stricter minimum tax rules is a non-negotiable point for her and indicated that consensus among her colleagues may be lacking.
“I’m sure that some are trying to use [the AMT] as leverage, but it can’t come back,” she asserted.
When asked about his position on an income cap for SALT, Johnson refrained from commenting directly but noted that he believed an agreement was imminent.
“I haven’t been forecasting where I'm at on this, because I want to allow time for this to work out. But I think we're very close, and we'll get that.”
“We're going to find the equilibrium point on SALT that no one will be totally delighted with, but it'll solve the equation, and we'll get it done,” Johnson told reporters.
Aarav Patel for TROIB News
