Posted on 05/01/2025 2:41:15 PM PDT by DFG
Republican lawmakers from Democratic states are locked in tense closed-door talks over state and local tax (SALT) deductions — seeking an annual cap of between $30,000 and $100,000 to include in President Trump’s “big, beautiful bill,” sources say.
GOPers from New York, New Jersey and California met Wednesday with House Speaker Mike Johnson (R-La.) and House Ways and Means Chairman Committee Chairman Jason Smith (R-Mo.) on Capitol Hill to hash out an agreement to stick in a multi-trillion dollar tax package.
Three sources familiar with the meeting told The Post that members sought consensus as they batted around figures of $30,000, $40,000 or $60,000 — and still others suggested a deduction cap of “$100,000 or bust.”
Rep. Jeff Van Drew (R-NJ) has previously said roughly $30,000 per individual filer is “a good number” and “still reasonable.”
An unidentified California Republican suggested a $60,000 cap, one source close to the talks said, which roughly matches legislation introduced in the last Congress by Long Island Rep. Nick LaLota to set that deduction level for single filers and $120,000 for joint filers.
Rockland County Rep. Mike Lawler has also floated a bill hoping for a $100,000 deduction for individuals and a $200,000 cap for married couples, which would also eliminate the so-called “marriage penalty” that previously set the same levels for individual and joint filers.
The current maximum cap for those filing federal returns is $10,000 for individuals and married couples, a level set by Trump’s 2017 Tax Cuts and Jobs Act and scheduled to expire at the end of this year.
Staten Island Rep. Nicole Malliotakis and others have said that the current maximum deduction is not enough — nor is doubling the amount to $20,000.
“We’re working on identifying a number that will cover the middle-class families we represent,” Malliotakis said.
(Excerpt) Read more at nypost.com ...
Screw high tax states. No deductions.
Ditto. Their choice. There is absolutely nothing to be gained by the federal government. The whole thing should be done away with.
While I sympathize with your situation, I see no reason for Red States to subsidize Blue State insanity. Which is what this amounts to. Idaho is lovely this time of year. ;-)
The scumbag rat states want to continue fleecing their residence
The main thing would be not to allow those who are doing really well to deduct millions of dollars for state income tax.
Raise the deduction for SALT, but leave the 1099 for interest income at $10, and the 1099 for other income at $600. (And then shred millions of “information returns” - paper filed 1096’s at 10 units) How convenient for the big spenders, and how expensive for taxpayers to comply. Very one-sided.
While I’m sympathetic to those in high-tax states, I see no reason for those of us in lower tax states to give them a deduction/rebate-it only encourages their state govt to do more of the same-like raise their taxes since the rest of the US taxpayers are funding it by default...
That’s exactly the point. We both live in zero income tax states. At least TX doesn’t sale tax food.
Our population isn’t big enough to exempt food but we’re working on it.
I wonder if you have taken into account that we need the votes of the Republican senators & house members from Blue states to pass the big beautiful bill?
It is counterproductive to die on the hill of why should we subsidize when they have negotiating leverage. It’s either a big tax hike or some SALT flexibility.
Rome wasn’t built in a day. Focus on the bottom line and work to pressure blue states to operate efficiently down the road when they don’t have illegal migrants to spend billions on and the census has cut their representation numbers.
Red voters in blue-purple states like Pennsylvania and Ohio were seeing red and feeling fleeced when the 2017 bill was passed.
Kind of like a bait and switch.
Personally, I “broke even” because the higher standard deduction exceeded my pre 2017 Schedule A. Of course having paid off the mortgage helped to make that possible.
This SALT has already been cut once-we don’t need it revisited. I’d rather see red states-and the purple ones who want to go-leave the union, taking our pres, vice pres, cabinet, etc and keep up the budget cutting on our own instead of humoring those too greedy to vote for the budget bill without a damn bribe-es ridiculo...
Oh s**t. You got laid off? With all your medical issues?
Almost seems like a lawsuit is lurking around in there somewhere.
If you’ll excuse my disagreement I think that is an absurd position. We are not playing a board game and trashing the board pieces because we don’t like the game.
There are hundreds of millions of people whose lives will be destroyed if the Republicans in house & senate can not forge an agreement to move forward. This is not business as usual and there is no path to secession.
I respectfully disagree-it is not a game, period. The SALT issue was already addressed and decided once-recently. Going back to it is just blue states insisting on being bribed for voting the way they know is right. That is both corrupt and greedy-they are used to doing it and having RINOs rush to do their bidding-we need to cut that s*** out-al fin...
I also think splitting of red and blue states may be simmering just below the polite politics-and democrats are stupidly feeding the fire every time they incite violence, step all over taxpayers in blue states, etc-check out what is going on between counties in Cali, Oregon, etc-the friend I work for is in Oregon on family business right now-he sent me videos of some town halls, and links to some editorials by people just plain fed up-in areas of a bluer-than-blue state...
LOL President Trump lives almost half the year in a “blue” state. His second home is in Bedminster New Jersey.
No. No federal subsidies for state property taxes. I pay $10,000 for my modest property in Northern Virginia. I’m willing to go to the walll to prevent this theft by blue states. Only the reality of pain will get those parasites in the NE to pay their fair share and fund their states locally.
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