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Blue-State Republican Reps Aim to Repeal SALT Deduction Cap

S.J. Steinhardt
Published Date:
Jan 4, 2023

Republicans who flipped or held congressional districts in high-tax states, such as New York, New Jersey and California, are going to Washington intending to repeal the $10,000 cap on state and local tax (SALT) deductions instituted by the 2017 Tax Cuts and Jobs Act (TCJA), Roll Call reported.

U.S. Rep. Andrew Garbarino (R-N.Y.) is one of them. A co-chair of the bipartisan SALT Caucus, he said that extending the SALT cap beyond its scheduled lapse at the end of 2025 does not have the votes to pass the House. Although more than 120 House Republicans, including contenders to chair the Ways and Means Committee, want that cap to be permanent—along with the TCJA's lower individual income tax rates, its 20 percent deduction for owners of pass-through businesses and its expanded child tax credits—their votes are not enough.

Nearly 17 percent of voters in Suffolk County, much of which Garbarino represents, claimed limited SALT deductions in 2020 and paid about $28,000 per household that year, according to IRS data cited by Roll Call.

Garbarino told Roll Call that he would like to repeal the cap sooner than 2025, but would be satisfied with letting it sunset, rather than compromise on a higher dollar figure. He also believed that leadership’s reluctance to address this issue would cause it to be put off until after the 2024 presidential election.

U.S. Rep. Christopher H. Smith (R-N.J.), one of nine Republicans to vote against the TCJA due to the SALT deduction cap, told Roll Call that said he will keep working to reverse the cap. Incoming U.S. Rep. Nick LaLota (R-N.Y.), who will represent eastern Long Island in the 118th Congress, said in a post-election interview that “voters can be confident that I will be a strong advocate for the restoration of our SALT deduction,” but suggested compromising with those who view the deductions as a subsidy for high spending in states such as New York.

Another incoming Representative from Long Island, Anthony D’Esposito (R-N.Y.), who flipped a Democratic seat, told Roll Call that “[r]epealing SALT or finding tax relief for people of my district is super important and a priority.”

Garbarino told Roll Call that he and U.S. Rep. Josh Gottheimer (D-N.J.) were already discussing SALT with newly elected Republicans.