When the State and Local Tax (SALT) deduction was first voted on in the House— Nov 16, 2017— every Democrat voted against it. Only 13 Republicans crossed the aisle to vote for their constituents’ best interests. And of those, only 3 are still in Congress, Tom McClintock (R-CA), Chris Smith (R-NJ), Elise Stefanik (R-NY). Among the Republicans still serving who voted for SALT, screwing their own constituents to please Trump:
Ken Calvert (R-CA)
Doug LaMalfa (R-CA)
David Valadao (R-CA)
Andy Harris (R-MD)
Tom Emmer (R-MN)
On Tuesday, just before a MAGA rally in Nassau County— a hot bed of opposition to the SALT legislation— Trump reversed himself entirely, claiming he would get rid of his own hated legislation, legislation he originally passed to screw over high income and middle class voters in blue states— primarily New York, California and New Jersey, but also Connecticut, Massachusetts, Illinois, Maryland, Oregon, Vermont Hawaii, New Hampshire and Minnesota. Yesterday, Tom Suozzi, one of the most vocal opponents of Trump SALT legislation, sent out a press release asking Trump to urge his congressional puppets to reinstate to SALT deduction immediately:
“I am happy that the former president is saying that he has finally reversed his devastating decision in 2017 to cap the State and Local Tax (SALT) deduction. It has been a body blow to my constituents for the past 7 years. If he is truly serious he should urge 100 Republicans in the House and 25 in the Senate to join me to restore the full SALT deduction now!!”
A tiny bit of background before we get into the politics of what Trump is up to now. The legislation that the SALT deduction cap was part of the big Trump tax bill, which he signed into law on December 22, 2017. Itdrastically lowered the corporate tax rate, reduced individual income tax rates for the wealthiest Americans and limited the deduction for state and local taxes to $10,000. The SALT deduction had previously been unlimited, allowing taxpayers to deduct state and local taxes from their federal income tax. After the TCJA passed, Democratic lawmakers from the high-tax states who were targeted by it quickly rallied against the SALT cap, calling it an unfair tax increase on their constituents. The cap especially affected middle-to-upper-income earners in states with high property taxes and state income taxes, many of whom saw their federal tax bills rise significantly. Republicans argued that the SALT deduction was essentially a subsidy for high-tax states, allowing them to maintain elevated tax rates because their residents could deduct those taxes from their federal obligations. By capping the deduction, Republicans framed it as leveling the playing field for taxpayers in low-tax states, who had previously shouldered more of the federal tax burden.
In the 2018 midterms, opposition to the SALT cap became a campaign issue in high-tax states. Many Democrats running in suburban districts, particularly in places like New York and New Jersey, promised to fight for the repeal of the SALT cap. After regaining control of the House, Democrats included the repeal of the cap in their proposals to reform the tax code. McConnell killed the legislation in the Senate. When Democrats took control of the White House and Congress in 2021, many saw an opportunity to lift or eliminate the SALT cap. Several House Democrats pushed for its repeal in the Biden Build Back Better plan. A compromise was proposed to raise the cap from $10,000 to $80,000, but that effort stalled after Manchin and Sinema conspired with the GOP to tank the bill. Keep in mind, though, that the SALT deduction is a point of contention even within the Democratic Party. Progressives criticized efforts to repeal or raise the cap, arguing that it disproportionately benefited wealthier taxpayers, contending that focusing on SALT relief would undermine broader efforts to pass more progressive economic policies aimed at helping the working-class, particularly renters.
Trump’s cynical and opportunistic lie this week— flip-flopping— is clearly just another he’ll-say-anything campaign tactic to win over suburban homeowners. As progressives have reminded us, the SALT deduction overwhelmingly benefits high-income households with something like 96% of the benefits from repealing the SALT cap going to households earning more than $200,000 a year. By advocating for a repeal or increase of the SALT cap, Trump is essentially proposing a tax cut for the wealthy. While this might appeal to suburban, upper-middle-class voters in states like New York and New Jersey, it goes against progressive calls for a more equitable tax system where the wealthy pay their fair share.
Tuesday evening Hans Nicholas and Stef Kight reported that Señor T’s switcheroo “has forced Senate Republicans into a pickle: contradict their party's leader or their old positions… 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.” Right now, they’re tap-dancing.
"We'll take a look at all the suggestions," Senate Minority Whip John Thune (R-SD), 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-FL) 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-ID), the ranking Republican on the Finance Committee. "But like I said, everything's up for negotiations."
The new Trump idea does have support from Majority Leader Chuck Schumer (D-NY) 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."
Blue state Republicans in swing districts, particularly Tom Kean Jr (NJ), Jeff Van Drew (NJ), Anthony D’Esposito (NY), Mike Lawler (NY), Brandon Williams (NY), Marc Molinaro (NY), Nick LaLota (NY), Michelle Steel (CA), Ken Calvert (CA), Young Kim (CA), John Duarte (CA), David Valadao (CA), Mike Garcia (CA) and Jay Obernolte (CA) are the most to lose politically if they make the wrong move on this.
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