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Trump Floats Lifting SALT Cap

US
Homepagemarkets-real-timePolitical RiskPolitical Risk BulletBulletMarketsFixed Income BulletsForeign Exchange BulletsPolitical Market News

Former President Donald Trump indicated yesterday that he would support lifting the cap on state and local tax (SALT) deductions, a major policy pivot considering he signed the cap into law in his 2017 tax package. The Committee for a Responsible Federal Government arguesthat "repealing the [USD$10,000] SALT cap would be costly, distortionary, and regressive," costing an estimated USD$1.2 trillion over a 10 years.

  • Trump said in a Truth Social post: “I will turn it around, get SALT back, lower your Taxes, and so much more.”
  • The move, likely designed to target voters in high-tax states like New York, California and New Jersey, puts Trump's 2024 policy platform at odds with Congressional Republicans and aligns him with Senate Majority Leader Chuck Schumer (D-NY) who said he has "always been for eliminating the cap on SALT."
  • Axios reports: “Trump's surprise post on SALT deductions has forced Senate Republicans into a pickle: contradict their party's leader or their old positions.”
  • Senate Minority Whip John Thune (R-SD) said in an interview: "We'll take a look at all the suggestions," noting that the cap "got litigated extensively in 2017."
  • Senator Mike Crapo (R-ID), the ranking Republican on the Senate Finance Committee, said: "I personally, at this point in time, believe we should extend the TCJA SALT provisions. But like I said, everything's up for negotiations."
  • Trump could announce the plan as a formal policy proposal at a campaign rally in New York at 19:00 ET 00:00 BST this evening.
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Former President Donald Trump indicated yesterday that he would support lifting the cap on state and local tax (SALT) deductions, a major policy pivot considering he signed the cap into law in his 2017 tax package. The Committee for a Responsible Federal Government arguesthat "repealing the [USD$10,000] SALT cap would be costly, distortionary, and regressive," costing an estimated USD$1.2 trillion over a 10 years.

  • Trump said in a Truth Social post: “I will turn it around, get SALT back, lower your Taxes, and so much more.”
  • The move, likely designed to target voters in high-tax states like New York, California and New Jersey, puts Trump's 2024 policy platform at odds with Congressional Republicans and aligns him with Senate Majority Leader Chuck Schumer (D-NY) who said he has "always been for eliminating the cap on SALT."
  • Axios reports: “Trump's surprise post on SALT deductions has forced Senate Republicans into a pickle: contradict their party's leader or their old positions.”
  • Senate Minority Whip John Thune (R-SD) said in an interview: "We'll take a look at all the suggestions," noting that the cap "got litigated extensively in 2017."
  • Senator Mike Crapo (R-ID), the ranking Republican on the Senate Finance Committee, said: "I personally, at this point in time, believe we should extend the TCJA SALT provisions. But like I said, everything's up for negotiations."
  • Trump could announce the plan as a formal policy proposal at a campaign rally in New York at 19:00 ET 00:00 BST this evening.