Bill to expand SALT deduction blocked in U.S. House
Speaker of the House Mike Johnson, R-La., right, departs after meeting with reporters at the Capitol in Washington on Wednesday. A bill that would expand the amount of state and local taxes that can be deducted from federal tax bills was blocked from going to a full floor vote. Credit: AP/J. Scott Applewhite
WASHINGTON — Legislation by New York House Republicans to boost the cap on deductions for state and local taxes (SALT) fizzled Wednesday after failing to get the necessary votes for consideration on the House floor.
The Republican-controlled U.S. House voted 225-195 against a rule change that would have allowed the bill to bypass the committee process and go before the full House for a vote. Eighteen House conservatives joined Democrats to tank the procedural measure.
The bill, co-sponsored by Reps. Anthony D’Esposito (R-Island Park), Andrew Garbarino (R-Bayport) and Nick LaLota (R-Amityville), called for increasing the SALT deduction cap from $10,000 to $20,000 for married couples making less than $500,000 a year.
The Long Island lawmakers and other New York Republicans had pushed unsuccessfully for inclusion of the SALT relief measure in a sweeping $78 billion bipartisan tax plan that passed the House last month.
House Speaker Mike Johnson, responding to pushback from the New York Republicans, gave them the green light two weeks ago to try to bring their bill to the floor via suspension of the rules.
The measure represented the latest attempt by New York lawmakers to undo the SALT cap put in place under a tax law passed by congressional Republicans in 2017 and signed into law by then-President Donald Trump. The plan lowered the corporate tax rate and expanded tax deductions for businesses.
D'Esposito said in a statement he was "frustrated" by the vote Wednesday but would continue "fighting to provide New York neighbors with the SALT relief they deserve."
LaLota in a statement also vowed to fight "until my constituents get relief."
But with the cap set to expire in 2025, the window of time to pass a relief bill is narrowing.
Blue-state lawmakers on both sides of the aisle have argued the $10,000 cap amounts to a double tax on property owners. But Republican supporters of the SALT cap, who generally hail from states with lower state and local taxes, argue the cap primarily impacts wealthy property owners who already benefit from other tax write-offs.
A recent analysis by the nonpartisan Tax Foundation said the bill to double the SALT cap for married couples would cost the federal government $11.7 billion this year in lost revenue.
Laura Figueroa Hernandez is the White House correspondent and previously covered New York City politics and government. She joined Newsday in 2012 after covering state and local politics for The Miami Herald.
