House Republicans describe "positive" talks with Trump on raising the SALT deduction cap, aiming to ease tax burdens in high-cost states.
House Republicans from New York, California, and New Jersey, who have voiced dissatisfaction with the current cap on state and local tax deductions, characterized their discussions on the matter with Donald Trump on Saturday night as “positive” but noted no concrete agreements were reached by the president-elect.
“He clearly conveyed that he understands the financial strain our constituents are facing due to high taxes,” Representative Nick LaLota of New York stated in an interview. Trump “is open to working toward a resolution,” he added.
Representative Nicole Malliotakis, another New York lawmaker who participated in the gathering of roughly 16 House Republicans with Trump at his Mar-a-Lago estate in Florida, described the meeting as “productive” in a post on X.
Trump’s team did not immediately respond to requests for comment regarding the discussions.
The central topic of the in-person meeting was the $10,000 limit on the so-called SALT deduction, a key provision of Trump’s 2017 tax overhaul, which is slated to expire after the 2025 tax year. The lawmakers are pushing for an increase—or complete elimination—of the cap to alleviate the financial pressure on residents of states like New York and California, where steep tax rates and high property values make the deduction particularly impactful.
Representative Mike Lawler of New York, who also attended the meeting, is advocating for raising the cap to $100,000 for individuals and $200,000 for married couples. Currently, the cap remains the same for both single and joint filers.
“The meeting was productive, and the president is fully supportive of raising the cap,” Lawler said, though he clarified that no specific figures or strategies were finalized. “The president wants us to propose a number,” he added.
Trump’s economic advisors have reportedly considered increasing the cap to $20,000. However, they have resisted calls to make the deduction unlimited, as any new tax legislation would need to include offsets for potential revenue losses.
Despite this, efforts to lift the cap face opposition from some conservative Republicans in lower-tax states and non-partisan analysts, who argue that the deduction primarily benefits higher-income households in predominantly Democratic states.
A significant expansion of the SALT deduction cap is already shaping up as a potential condition for support from certain Republicans, including Lawler, in exchange for backing broader tax-related legislation.
With the House GOP majority holding only a slim margin, Speaker Mike Johnson can afford few defections or holdouts if he hopes to pass any party-line bills.