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SALT Caucus Threatens Big Beautiful Bill

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(Washington DC) – Republican lawmakers from blue states are voicing their concerns about potential reversals to changes made to the SALT deductions. In the sweeping budget resolution, the “One Big Beautiful Bill Act” raises the deduction on state and local taxes (SALT) from $10,000 to $40,000. Raising the SALT amount has been an issue championed by several congressional members in New York and New Jersey including Representatives from Long Island Andrew Garborino and Nick LaLota. The issue has gotten bipartisan backing as well with Democrat Tom Suozzi sitting on the SALT caucus. The deduction gives a form of tax relief for people living in high-income areas.

The issue with SALT deductions staying untouched is that there are no members of the Senate that are committed to both backing this budget bill and ensuring the SALT deductions are increased. Founder of The Loud Majority, Kevin Smith, appeared on WABC’s Weekend Newshour where he pointed out that Senate Republicans have a hard time giving any ground to people in those high-income coastal areas. Senate Majority Leader John Thune of South Dakota spoke on the SALT issue saying “”It’s just not an issue that plays. Most of our states, we’re states that are low-tax states, and we don’t think that low-tax states ought to be subsidizing high-tax states.” House Speaker Mike Johnson has been urging his colleagues in the upper chamber to leave the bill intact as it stands.

However, if the Senate were to make changes to the bill, specifically regarding the SALT deductions, several members of the house SALT caucus have already vowed they will not vote in favor of any revisions. Congressman Mike Lawler who represents parts of Rockland county, said in a post on X “Since the last tax bill, 29 states have blown past the 10k cap. This isn’t a red vs blue issue, it’s an issue of double taxation. Since when do Republicans advocate for taxing you on top of taxes already paid? No SALT. No Deal.” The bill narrowly passed in the house by a single vote. The bill also faces some challenges in the Senate with several members of the GOP like Wisconsin Senator Ron Johnson saying not even the President himself could get them to support this bill as it stands. Republicans have a 3-seat majority in the Senate along with the tie-breaking vote of Vice President JD Vance.

 

 

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