Donald Trump posted he would
"get #SALT back."
That's a strong indication he wants to
let those in high-tax states deduct more than $10,000 from their federal taxes
— a limit he championed in his 2017 Tax Cuts and Jobs Act.
Republicans in blue states, especially in New York, have made repealing the SALT cap a calling card
and have been willing to challenge their Republican colleagues on it.
Trump's new position might make it easier for them to return to Congress.
State of the play:
The $10,000 SALT cap expires at the end of 2025.
If Trump — or Harris — does nothing, wealthy taxpayers in high-tax states will be able to deduct an unlimited amount from their federal returns, lowering the overall tax bill.
The bottom line:
Removing the $10,000 SALT cap would cost an estimated $1.2 trillion over a decade, according to the Committee for a Responsible Federal Budget.
An estimated 92% of the benefit would go to the top 10% of earners, according to CRFB.
Trump's surprise post on SALT deductions Tuesday has forced Senate Republicans into a pickle:
contradict their party's leader or their old positions.
For Republican leaders, it's a taste of what's to come if Trump wins back the White House.
They'll have to harmonize their own positions
— in real time
— with a president who is constantly changing his.
Zoom in:
"We'll take a look at all the suggestions," Senate Minority Whip John Thune (R-S.D.), who is running for leader, told reporters, noting it "got litigated extensively in 2017."
"I don't think we ought to be subsidizing state taxes," Sen. #Rick #Scott (R-Fla.) told Axios repeatedly, adding Republicans need to win the House, Senate and White House first before there's a real discussion on what to do about SALT.
"I personally, at this point in time, believe we should extend the TCJA SALT provisions," said Sen. #Mike #Crapo (R-Idaho), the ranking Republican on the Finance Committee. "But like I said, everything's up for negotiations."
The other side:
The new Trump idea does have support from Majority Leader #Chuck #Schumer (D-N.Y.) who said he has "always been for eliminating the cap on SALT."
Schumer called the Trump tax bill "a nasty piece of legislation," which was "aimed at the blue states."
https://www.axios.com/2024/09/18/trump-salt-tax-cuts-senate