Rep. Mike Lawler said the lower cap on the federal deduction for state and local tax payments, also known as SALT, has had a “negative impact” on New York.
“There were key provisions that helped reduce the overall tax burden, but we know the cap on SALT had a negative impact on New York,” he said in an interview on “Inside City Hall” Wednesday.
Several Republicans in suburban districts have sided with Democrats in pushing for that cap to be raised above the current $10,000 limit.
According to Lawler, he along with Reps. Nick LaLota, Andrew Garbarino and other New York congressmembers have fought for the cap to be lifted as part of ongoing federal budget talks.
“We negotiated in good faith with leadership, with the White House, to get to a number, $40,000 for individuals and those filing jointly with a $500,000 income cap,” he said.
Raising the cap to $40,000 would be a costly provision, running into the hundreds of billions of dollars. Conservative Republicans have said they are worried it will add to the nation’s $36 trillion debt.
The lower SALT cap was enacted in 2017 as part of a tax cut plan during President Donald Trump’s first term in office. That plan will expire at the end of this year.
“We wanna make sure this is targeted to the middle class, that we are providing real tax relief to those families who have been crushed by New York’s highest-in-the-nation tax burden under Democratic Party rule,” Lawler continued.
Lawler’s 17th Congressional District in the Hudson Valley includes parts of Rockland, Westchester, Putnam and Dutchess counties.