The fate of a tax deduction essential to many residents of New York and other high-tax states will be front and center this weekend when U.S. House Republicans meet with President-elect Donald Trump in Florida. 

During the Saturday gathering at Mar-a-Lago, Reps. Mike Lawler, Nick LaLota and others are expected to make their pitch for raising the cap on the federal deduction for state and local taxes, better known as SALT, as part of the sweeping tax reform package Republicans aim to pass this Congress.

But, in interviews with Spectrum News ahead of that meeting, Lawler and LaLota both tempered expectations, indicating it is unlikely the SALT deduction will be fully restored.

What You Need To Know

  • Reps. Mike Lawler, Nick LaLota, and other so-called "SALT Republicans" are expected to meet with President-elect Donald Trump this weekend in Florida

  • In interviews with Spectrum News ahead of that meeting, Lawler and LaLota both tempered expectations, indicating a full restoration of the federal deduction for state and local taxes, currently capped at $10,000, may not be in the cards

  • The SALT cap disproportionately hurts taxpayers in blue states like New York, where property and state income taxes are relatively high
  • LaLota and Lawler noted that even a partial lift of the cap would be beneficial, while New York Gov. Kathy Hochul, a Democrat, argued anything short of a full repeal is unacceptable

“Ideally we would go back to unlimited, but I’m not sure that’s realistic as you’re negotiating through a tax bill,” Lawler said.

“Unlimited may not be in the cards,” LaLota said.

On the campaign trail last year, Trump pledged to “get SALT back,” vowing to restore the deduction that he largely eliminated in 2017 to help pay for the tax cuts he pushed through Congress. That 2017 law capped the deduction to the first $10,000 in local and state tax payments. 

Trump’s campaign pitch was welcomed by New Yorkers.

The SALT cap disproportionately hurts taxpayers in blue states like New York, where property and state income taxes are relatively high. Lifting it is a priority for New York Democrats and Republicans alike. 

With Republicans holding a thin House majority, every GOP member effectively has veto power over what is included in the final package.

In an interview, Lawler said, “I’ve been very clear, I will not support a tax bill that does not lift the cap on SALT.” 

Ahead of Saturday’s gathering, he reintroduced legislation to boost the cap to $100,000 for single filers and $200,000 for married joint filers.

However, Democrats argue that anything short of a full repeal is not good enough. Hudson Valley Congressman Pat Ryan, a Democrat, said it is time for Republicans to “put up or shut up and exercise the leverage you have with the president-elect.”

“I hope they go down there and fully push for a full repeal. That’s what certainly my constituents deserve and rightly have demanded,” he said. 

Ryan has called on Trump to include Democrats in the SALT talks.

LaLota and Lawler noted that even a partial lift of the cap would be beneficial, and they warn that derailing the entire tax package would be catastrophic. Both urged their GOP colleagues to work together.

“Even 30 to 60 thousand dollars is effectively a full repeal for about 90% of my constituents,” LaLota said. 

“What cannot happen is that no tax bill passes,” Lawler said. “Then you would have the single largest tax increase in American history and that’s not acceptable either.”

In a statement Wednesday, New York Gov. Kathy Hochul, a Democrat, argued anything less than a full repeal of the cap is unacceptable. “Republicans have drained billions directly from the pockets of their own constituents, and now it’s time for them to deliver,” she wrote. “No excuses."

In a statement ahead of the meeting, Trump transition spokeswoman Karoline Leavitt said, "President Trump received a historic mandate from the American people to Make America Wealthy Again. He will work across the political spectrum to deliver on his agenda for the American people."