Key Takeaways:
- House Republicans are fighting over raising the SALT cap, a tax deduction mainly benefiting wealthier households.
- Some GOP members in high-tax states like New York want a higher cap than what leaders proposed.
- The Wall Street Journal criticized this push, warning it could backfire politically.
- Democrats in high-tax states might raise taxes even more if the cap increases.
- Senate Republicans are urged to limit the cap to avoid aiding Democratic states.
House Republicans’ SALT Cap Showdown Heats Up
The SALT cap debate is causing tension among House Republicans, and even President Trump is losing patience. The conflict centers on the state and local tax (SALT) deduction, which allows people in high-tax states to reduce their federal tax bills.
What’s Happening Now?
Some Republicans, especially those in swing districts, want to raise the SALT cap from $10,000 to $30,000 or even higher. This push is driven by lawmakers like Rep. Mike Lawler of New York, who fear their constituents will revolt if the cap isn’t increased.
However, Trump recently told Lawler to “drop it,” showing his frustration with the ongoing drama.
Wall Street Journal Calls Out GOP’s SALT Strategy
The Wall Street Journal’s editorial board slammed Republicans for their focus on the SALT cap. Their main argument: raising the cap would mostly help wealthy families in high-tax states like New York and California. Meanwhile, people in other states, like Texas, where there’s no income tax, wouldn’t benefit much.
Why the WSJ Thinks It’s a Bad Idea
The Journal points out that the standard deduction is already $32,600 for couples, which is higher than what most people pay in property taxes. For example, Texans pay no income tax and only $3,872 in property tax on average. Why should they help fund higher taxes in New York?
The editorial warns that if Republicans raise the SALT cap, Democratic-run states might take advantage by hiking taxes even more. This would let Democrats off the hook for managing high taxes and preventing wealthy residents from moving away.
A Blast from the Past: Democrats’ SALT Moves
Ironically, Republicans are now pushing for SALT relief that Democrats didn’t even grant when they controlled Congress in 2021 and 2022. Back then, Democratic representatives like Josh Gottheimer and Mikie Sherrill demanded higher SALT caps but still voted for the Inflation Reduction Act without getting their way.
Now, Senate Majority Leader Chuck Schumer is blaming Republicans for not doing enough on SALT, even though he didn’t deliver during his time in power. The Journal calls this move hypocritical and politically clever.
The Folly of the SALT Caucus
The Wall Street Journal’s biggest criticism is that Republicans are helping high-tax Democratic states while getting nothing in return. It argues that Democrats will attack Republicans no matter what, so the GOP might as well avoid this political trap.
A Warning for Senate Republicans
The editorial concludes by urging Senate Republicans to step in and limit the SALT cap in their version of the bill. Doing so would prevent a bad deal for most Americans and avoid handing Democrats a political win.
Final Thoughts
The SALT cap fight is a mess, with Republicans divided and Democrats waiting to exploit the situation. The Wall Street Journal’s warning is clear: this battle could backfire, and the country deserves better. Senate Republicans have the chance to fix this before it’s too late.