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Republican Discusses Raising SALT Cap
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Republican Discusses Raising SALT Cap

If there's ever been a more blatant example of selective fiscal conservatism, the current squabble over the SALT (State and Local Tax) deduction cap within the Republican Party may just take the crown. What was once a unifying GOP rallying cry—“no more subsidies for bloated blue states”—has now turned into a cage match of fiscal hypocrisy, waged not by Democrats, but by Republicans who suddenly think $30,000 in deductions isn’t enough to soothe their high-tax, high-income constituencies.


Let’s take a quick trip down memory lane: Trump’s 2017 tax reform capped the SALT deduction at $10,000—a move hailed by fiscal hawks as a leveling force. For the first time, taxpayers in states like New York, New Jersey, and California would have to feel the real weight of their own state governments’ reckless spending. No more hiding behind federal subsidies. No more expecting Texans and Tennesseans to underwrite Albany’s tax-bloated bureaucracy or Sacramento’s endless spending sprees.

Fast forward to 2025, and House Republicans from high-tax states are throwing a fit. Not Democrats. Republicans. People like Rep. Young Kim, who called the $30,000 proposed cap—a threefold increase over the current $10K limit—a “slap in the face.” She wants a $62,000 cap for individuals, which is as subtle a handout to high-income blue state voters as you’re likely to see wrapped in GOP branding.


Sixty-two grand.

In what world does that fit with a party preaching restraint and equal tax treatment?

What’s worse, some Republicans—clearly emboldened by the sniff of electoral gains in affluent suburbs—are demanding deductions as high as $124,000 for married filers. At that point, you’re not just softening the blue-state tax burden, you’re throwing it a down pillow, warm blanket, and mint on the pillow.

To be clear, the current draft from the House Ways and Means Committee lifts the SALT deduction cap to $30,000 for individuals and couples, with income limits. That’s a reasonable compromise—especially considering the rest of the bill follows through on Trump’s working-class tax pledges, like eliminating income taxes on tips and overtime through 2028, and offering seniors an extra $4,000 standard deduction bonus.


The bill also proposes a $4 trillion debt ceiling hike, while aiming to cut spending by $1.5 trillion over the next decade—aggressive, yes, but aimed at economic stimulation without directly raising taxes on ordinary Americans. Despite Trump’s recent suggestion to raise the top tax rate on ultra-high earners to 39.6%, the legislation holds the line at 37%, preserving the structure of the 2017 tax overhaul.

In a Congress that’s passed just six bills in Trump’s second term—the fewest in modern history—Republicans are grinding the gears of progress to bargain for more SALT deductions. These aren’t cost-of-living relief efforts for the working poor. These are backdoor tax shelters for the affluent, hidden beneath the camouflage of "protecting our constituents."


What constituents, exactly? Hedge fund managers in Westchester? Trial lawyers in Palo Alto?

These lawmakers aren’t worried about working-class Americans—they’re worried about real estate brokers, high-income lawyers, and suburban tech execs furious that their $60,000 property tax bill in Montclair can’t be deducted on federal forms. But if you live in a lower-tax state, you're still on the hook to underwrite that deduction.

Written by Arthur Higgens - May 13, 2025