Some Republicans aren’t too happy with a key part President
Donald Trump’s tax plan.
rough outline the administration released on
Wednesday said all deductions would be eliminated
except for those from charitable donations and mortgage payments.
One of the deductions that faces the chopping block is
the state and local tax deduction (SALT). Americans can deduct
the amount they pay in state and local taxes from their federal
return, saving them money on that filing.
While eliminating the SALT deduction
could save the federal government a massive amount of money,
it also benefits many people in three states: New
Jersey, New York, and California. According to
the Committee for a Responsible Federal Budget, about a third
of the benefit goes to those three states.
Those states have recently been three of the most
Democratic-heavy during presidential elections. But it’s
Republicans in Congress from those three areas who have already
started to push back about the provision’s possible elimination,
according to Bloomberg’s Sahil Kapur.
“I think it’s very important that it remain in the code,”
Rep. Leonard Lance, of New Jersey,
Reps. Chris Collins and Tom Reed of New York
also told Bloomberg that they were looking at the SALT
deduction and were not sure that they supported that element
of the Trump plan.
Even Republicans outside of these states
could find political benefit in fighting against the
elimination of the SALT deduction.
As noted by the New York Times’ Nate Cohn, the SALT
dedication is used more heavily by people in “vulnerable
Republican” districts. And as the GOP vote share decreases in a
congressional district, the value of
SALT deductions per filer generally increases.
That means GOP lawmakers in the House who may
find themselves in tough reelection fights have constituents very
interested in keeping the deduction intact. Members Cohn
pointed to include Rep. Barbara Comstock in Virginia,
Rep. Erik Paulsen in Minnesota, and Rep. Randy Hultgren in
Illinois, as well as some in the three blue-leaning
For instance, constituents in the district of Republican
Rep. Peter Roksam of Illinois, the head of the House Ways and
Means subcommittee on taxes, took the 10th highest value of
SALT deductions per filer in Cohn’s list and the third highest
for a GOP member outside of California, New York, and New Jersey.
When asked by Bloomberg about the deduction,
Roksam replied, “We’re going to look at all that.”
Conservative activist groups have long favored the
elimination of the SALT deduction for some time.