In a recent post on Truth Social, former President Donald Trump pledged to "get SALT back" if he is re-elected, indicating his intention to remove the cap on state and local tax deductions that he had signed into law in 2017. Trump, who is the Republican presidential nominee, made this promise in an attempt to gain support from New York voters, urging them to choose him over Democratic Vice President Kamala Harris in the upcoming election.

Trump stated, "We have a real chance of winning, for the first time in many decades, New York," as he highlighted the issues of crime, immigration, and inflation that have negatively impacted the state. He further suggested that his leadership would bring about a turnaround by eliminating the SALT cap, lowering taxes, and offering various other benefits. It is worth noting that Trump faced significant defeat in New York by hefty margins in both the 2016 and 2020 elections, with recent polls indicating a double-digit lead for Harris.

When asked for clarification regarding Trump's social media post and whether he intended to eliminate the SALT cap he had previously signed, the Republican's campaign did not provide a direct response. Instead, a statement from spokeswoman Karoline Leavitt was shared, emphasizing Trump's pro-growth and pro-energy policies that would make life more affordable. The campaign did not respond to additional queries from CNBC.

The SALT deduction previously allowed taxpayers to deduct certain state and local taxes from their federal tax returns. However, the Tax Cuts and Jobs Act of 2017, considered one of the major achievements of Trump's presidency, placed a limit of $10,000 on this deduction. This cap resulted in increased federal revenue and helped fund other cuts included in the comprehensive tax bill.

Democrats have criticized the limitations on the SALT deduction, arguing that they disproportionately impact blue states with higher state and local tax rates, such as New York and Connecticut. However, some progressives and tax-policy experts have defended the cap, asserting that repealing it would primarily benefit the wealthy.

It is essential to note that the SALT cap, along with other tax provisions of the 2017 tax law, is scheduled to expire at the end of 2025. While Democratic Vice President Kamala Harris has not explicitly stated that she would preserve the Trump-era tax cuts, she has made a commitment not to raise taxes for Americans earning less than $400,000 annually.

The nonpartisan Committee for a Responsible Federal Budget has voiced concerns over the potential repeal of the SALT cap, highlighting its potential costs, distortionary effects, and regressive nature.

As the election date draws near, the promise made by Trump to repeal the SALT cap adds another dimension to the debate over tax policy. With voters eager to see how the candidates' proposed tax changes will impact their wallets, the issue of taxes will undoubtedly play a significant role in the final stretch of the campaign.