House Republicans Face Internal Divisions Over the SALT Deduction Cap

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ICARO Media Group
Politics
15/05/2025 04h04

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House Republicans are currently embroiled in a heated dispute over the federal deduction for state and local taxes, also known as SALT. This contentious issue has become a critical factor in the party's plans for President Donald Trump's legislative agenda.

At the center of the conflict is Rep. Jason Smith, R-Mo., chair of the tax-writing House Ways and Means Committee. Smith faces opposition from a determined group of House Republicans hailing from high-tax blue states. Among the pro-SALT Republicans, disagreements have emerged over whether to accept Smith's proposal to raise the cap to $30,000 or to push for a higher figure.

Tensions reached a peak when pro-SALT Republicans convened in Speaker Mike Johnson's office and asked Rep. Nicole Malliotakis, R-N.Y., to leave. Malliotakis, a member of the Ways and Means Committee and supporter of the $30,000 cap, was accused of being a potential mole for Smith. She later voted for the bill, arguing it would provide necessary relief for the middle-class families in her district.

Four New York Republicans — Reps. Elise Stefanik, Mike Lawler, Nick LaLota, and Andrew Garbarino — remain adamant in their demands for a higher deduction cap, arguing that the proposed $30,000 limit is insufficient. The disagreement among Republicans is further complicated by taxes varying significantly by district.

As the debate continues, Speaker Johnson has been tasked with bridging the gap and negotiating a deal. Johnson has acknowledged the complexity of reaching a consensus, mentioning the possibility of discussions extending into the weekend. Meanwhile, some far-right Republicans are demanding deeper cuts to Medicaid in exchange for agreeing to any increase in the SALT cap.

The friction within the party is evident, with members of the SALT Caucus expressing frustration over Smith's approach, accusing him of pushing ahead without proper consideration of their concerns. Despite this, Smith has maintained that his actions reflect the will of his committee.

To draw attention to their concerns, pro-SALT Republicans have employed symbolic gestures, such as distributing salt packets and wearing "Feelin' Salty" pins. Amidst these negotiations, key figures like Rep. Jeff Van Drew, R-N.J., have called for compromise, emphasizing the need for middle ground solutions to advance the broader legislative package.

The ongoing SALT dispute highlights deeper fissures within the Republican Party, pitting moderate members against the far-right. As the clock ticks, reaching a resolution becomes increasingly vital to ensure the party can present a united front and deliver on Trump's legislative promises.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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