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.