New York’s Lawler Says SALT Cap Must Go to Pass GOP Tax Bill

A New York Republican congressman says that lifting the cap on state and local taxes will be crucial to getting President-elect Donald Trump’s tax overhaul through the House, given the party’s narrow majority in the chamber.

“I’ve been very clear, I will not support a tax bill that does not lift the cap on SALT,” Representative Mike Lawler said on Bloomberg Television’s “Balance of Power” Wednesday evening.

Mike Lawler

Photographer: Kent Nishimura/Getty Images

“My vote, along with many of my colleagues from New York, New Jersey, California, are going to be critical to pass a tax bill,” he said. “If nothing passes, the cap on SALT completely expires.”

The Republican 2017 tax package imposed a $10,000 cap on the state-and-local taxes individuals and families could deduct from their federal taxes. Some saw it as a penalty for higher tax states that tend to lean Democratic, but Republicans from those states have been complaining ever since.

The 2017 package expires next year. Trump during the campaign called for its renewal and promised to eliminate taxes on Social Security and tips along with other proposals.

“It’s important for everybody to recognize the importance of entering into good faith negotiations here, but we need to have a robust tax bill that is focused on economic growth that does work to reduce the deficit,” Lawler said.

Read more: NY Congressman Lawler Weighs Challenging Hochul for Governor

To contact the reporter on this story:
María Paula Mijares Torres in Washington at mmijarestorr@bloomberg.net

To contact the editors responsible for this story:
Megan Scully at mscully32@bloomberg.net

John Harney, Romy Varghese

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