New York Republican Hails Senate’s SALT Deduction Deal in Trump’s Tax Overhaul

A pivotal tax deal in the Senate's version of President Donald Trump’s sweeping legislation has won over a key New York Republican, signaling a potential breakthrough in the contentious debate over state and local tax (SALT) deductions. Rep. Mike Lawler, R-N.Y., expressed satisfaction with the compromise, which raises the SALT deduction cap from $10,000 to $40,000 for households earning up to $500,000, calling it a significant win for taxpayers.

The agreement, part of Trump’s ambitious tax reform, preserves the House’s language despite Senate efforts to scale it back. Lawler emphasized the immediate relief this offers, particularly for high-cost areas like New York and California, where residents face steep state taxes. “This is a massive win,” he told WTFNewsRoom, noting that Democrats failed to deliver on similar promises during their control in 2021-22.

However, the Senate shortened the deduction’s duration from 10 years to five, a move that sparked mixed reactions. While Lawler sees it as a fair trade-off, Rep. Nicole Malliotakis, R-N.Y., expressed mild disappointment, preferring her proposed $30,000 cap over a decade. “It’s a group exercise with many cooks in the kitchen,” she quipped, accepting the deal but lamenting its shorter timeline.

Not all blue-state Republicans are on board. Rep. Nick LaLota, R-N.Y., rejected the compromise, arguing for a permanent $40,000 cap with higher income thresholds. Meanwhile, Rep. Young Kim, R-Calif., remains cautious, tying her support to broader bill provisions, including Medicaid and small business taxes.

The SALT debate highlights a deeper divide. Blue-state Republicans argue their high-tax states subsidize lower-tax ones, while conservatives like Rep. Chip Roy, R-Texas, dismiss the deductions as rewarding blue-state fiscal mismanagement. As the Senate prepares to debate the 940-page bill, the outcome remains uncertain, with potential changes looming before a final vote.