The GOP is divided over lifting the SALT cap
Rep. Mike Lawler, R-NY, joins 'Sunday Morning Futures' to discuss Trump's meeting with blue state Republicans on raising the SALT cap and NYC congestion pricing.
President-elect Donald Trump is giving Republicans his blessing to negotiate a key tax bill that could prove key in GOP negotiations for a major overhaul of the policy next year.
Trump met with many different groups of House Republicans at Mar-a-Lago over the weekend, including blue-collar GOP lawmakers who make up the House SALT Caucus — a group opposed to the current $10,000 cap on state and local income tax credits (SALT) mostly affecting the population of towns and cities. in states with high income and property taxes, such as New York, New Jersey, and California.
“I think it's been productive and successful,” said Rep. Nicole Malliotakis, RNY. “The president supports our efforts to increase the SALT reduction. He understands that mayors and governors of blue states are pressuring taxpayers and want to provide relief from the federal level.”
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President-elect Donald Trump has told New York Republicans that he will work with them on several priorities (Chip Somodevilla/Getty Images)
But Trump also indicated he was aware of opposition from some in the House GOP caucus, particularly rural Republicans, who saw the SALT reduction as a tax break for the wealthy. Before the cap was put in place in 2017, there was no limit on how much state income tax and local property tax people could deduct from their income when filing their federal taxes.
“He gave us a little homework to do, a number that would provide relief to our middle-class constituents from the high taxes imposed by our governor and mayor, and by at the same time, you know, something that can build consensus and get (a majority of 218 votes),” Malliotakis said.
“I think we know very well that it will not be a complete lifting of the SALT cap. There is no appetite within Congress or even among American taxpayers to lower taxes for people who very rich.
“Our efforts are really aimed at middle-class families, and that's what we're focusing on to try to get the right balance.”
The current SALT deficit price is opposed by New York and California lawmakers for most of its existence, since it was billed in Trump's Tax Cuts and Jobs Act (TCJA).
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Rep. Nicole Malliotakis told Fox News Digital that Trump will work with New York Republicans on congestion pricing. (Drew Anger/Getty Images)
Trump has hinted that he will change course during his second term since last September, when he wrote on Social Truth that he would “go back to SALT, lower your taxes, and many more.”
The negotiations are part of a broader debate among Republicans about passing a major overhaul of fiscal policy and maintaining the status quo in a process known as “reconciliation.”
By lowering the Senate threshold for passage to a simple majority instead of two-thirds, the move allows the party that controls both houses of Congress and the White House to pass certain laws as long as they deal with issues. financial and other financial matters.
Some pro-SALT cutback Republicans, such as Rep. Mike Lawler, RN.Y., had indicated that he would not support the final bill if the funding was not increased.
“The only red line I have is if there's a tax bill that doesn't raise the cap on SALT, I'm not going to support that,” Lawler told Fox News' Sunday Morning Futures.
Lawler also said Trump agreed that the SALT reduction caps needed to be lifted.
House Republicans have no margin for error with a slim majority from Trump's inauguration until perhaps sometime in April.
Representative Mike Lawler said the SALT reduction cuts were a “red line” for his support of the budget reconciliation bill. (Tierney L. Cross)
Meanwhile, Trump also told New York Republicans that he will help them fight for their country law of congestion pricing which charges extra for driving in parts of Manhattan.
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“He understands how unfair this is and how it can affect the city's economy and the people we represent, so we're working with him on legislative options to reverse the rubber stamp of the Biden administration,” Malliotakis said. . “If there is a legal option, if there is a legal option for him to stop congestion pricing, he will do it.”
“You know, police officers, police officers, firefighters, nurses, restaurant workers who have to come in at odd hours, and they drive because they don't feel the transportation system is clean or safe.”
Congestion pricing went into effect in New York City earlier this month.
Fox News Digital has reached out to Trump's transition team for comment on this week's meeting.