The countdown is on for the end of the SALT cap.

In 2017, then-President Donald Trump and Republicans in Congress included a $10,000 limit on the federal deduction for state and local tax payments in their tax law, in part to help pay for the tax cuts included in the package. 

But come next year, several of those tax cuts plus the SALT cap are set to expire, and Washington is gearing up for a fight over the path forward on taxes. In some corners of Capitol Hill, the debate is already underway.

What You Need To Know

  • Come next year, the cap on the federal deduction for state and local taxes (SALT) is set to expire alongside certain tax cuts included in the GOP's 2017 tax law. Already, the debate on Capitol Hill over what to do going forward has begun 

  • Last month, Sen. Chuck Schumer told reporters that as long as he is Senate Majority Leader next year, he would not put something on the Senate floor that would reinstate the SALT cap

  • Spectrum News asked lawmakers in competitive New York congressional districts whether they would vote for an updated tax plan next year if a SALT cap is included. Some drew more explicit red lines than others 
  • Ultimately, the leverage these New Yorkers have in tax policy negotiations may hinge on the composition of Congress next year

Last month, Sen. Chuck Schumer told reporters that as long as he is Senate Majority Leader next year, the cap is “going to expire.”

“I'm not putting something on the floor that would reinstate it, because it hurts New York so badly,” he said. 

If Democrats lose control of the Senate in November, though, efforts to block a new SALT cap could shift to the U.S. House, where Brooklyn Rep. Hakeem Jeffries is poised to become speaker if Democrats flip enough seats. 

So, what would Jeffries do? On Thursday, he said Democrats are “committed” to reversing the “damage that was done by the extreme MAGA Republicans in connection with the 2017 GOP tax scam.”

He then made a pitch to voters, arguing they should empower Democrats to handle SALT’s future.  

“Who has the gavels on Jan. 3 in the 119th Congress will determine whether the state and local tax deduction is restored in full or whether it continues to be capped in a way that hurts middle-class families,” he said. 

The SALT cap disproportionately hurts taxpayers in blue states like New York, where property and state income taxes are relatively high. Lifting it is a priority for New York Democrats and Republicans alike. 

Spectrum News asked lawmakers in competitive New York congressional districts whether they would vote for an updated tax plan next year if a SALT cap is included. Some drew more explicit red lines than others. 

“They're going to have to figure out how to live without [a cap], because members like us are certainly not going to vote to extend it,” Republican Rep. Marc Molinaro said. 

“We have to absolutely eliminate this SALT cap,” Hudson Valley Democratic Rep. Pat Ryan said. “The starting position has to be that we can’t be double-taxing people.”

“I'll make my vote contingent upon whether or not we get back the entire state and local tax deduction or something that will take care of most of my constituents,” Nassau County Democratic Rep. Tom Suozzi said. 

“We need to negotiate a higher limit on SALT,” Suffolk County Republican Rep. Nick LaLota said, describing the $10,000 cap “not enough” for his constituents. 

Ultimately, the leverage these New Yorkers have in tax policy negotiations may hinge on the composition of Congress next year.

“Nobody is going to have a big majority come Jan. 3, 2025,” Republican Rep. Mike Lawler argued. “Everybody is going to have to recognize that, and you need our votes.”

This week, Trump reversed course on SALT. After helping to enact the SALT cap seven years ago, he now says he wants to “get SALT back.”