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The president-elect told Republicans from New York, New Jersey and California to come up with a plan for increasing the state and local tax deduction — a move that would benefit their constituents.
Jan. 12, 2025, 12:26 p.m. ET
President-elect Donald J. Trump reiterated his support for undoing a major provision of his 2017 tax law on Saturday when he told more than a dozen House Republicans at his Florida estate to come up with a plan for increasing the state and local tax deduction, according to four lawmakers who attended.
Republicans put a $10,000 cap on the deduction, often called SALT, during Mr. Trump’s first term to help cover the cost of the broader 2017 tax law they passed along party lines. The change upset lawmakers from both parties in high-tax states like New York and New Jersey, who have since made it a central political promise to restore a valuable deduction for residents in their states.
The yearslong quest to restore the deduction — or at least increase its limit — got a boost during the presidential campaign when Mr. Trump said he would “get SALT back.” But the House Republicans demanding an increase to the limit have not yet agreed among themselves on the details.
Some have called for raising the limit for the deduction as high as $200,000. Others have more modest ambitions, including a smaller increase in the deduction’s limit that would be paired with gradual hikes over time that match the pace of inflation. Right now, the $10,000 cap applies to both individuals and married couples, and the group seems in agreement that couples should take a larger deduction than individuals.
At the meeting on Saturday, House Republicans from New York, New Jersey and California offered a variety of ideas to Mr. Trump about how to address the issue, according to the attendees. Among the concepts discussed was the possibility of persuading local leaders to hold off on tax increases in return for a higher deduction for their residents.
“Maybe we increase the deduction, but maybe the deduction goes even higher if your state freezes or lowers the tax rate,” said Representative Nicole Malliotakis, a New York Republican and member of the Ways and Means Committee who attended the meeting. “These are all ideas we are entertaining.”
