Trump Calls SALT-Focused Republicans in Florida Ahead of Tax War

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(Bloomberg) — A delegation of about 20 Republican House members from New York, New Jersey and California have been invited to meet with President-elect Donald Trump at his Mar-a-Lago estate on Saturday ahead of the looming 2017 reelection battle. tax cuts.

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Most of the group will likely attend and plan to discuss raising the $10,000 state and local tax deduction, which has hurt voters in three high-tax states, according to U.S. Rep. Nick LaLota, who represents eastern Long Island, New York. York.

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Republicans in Congress are in the early stages of negotiating a package that would extend Trump’s 2017 tax cuts — including the future of the cap on SALT holdings, which will expire — and address other key immigration and energy production legislation. The meeting is a good sign for lawmakers who want to expand the deduction, a politically vexed repeal that has reduced tax bills for residents of some high-tax states.

In an interview with Bloomberg, LaLota said the group of lawmakers is including four other representatives who are joining him to push for a “reasonable” fix to the so-called SALT deduction. The cap was put in place as part of the 2017 bill.

“There are five very salty Republicans — I would expect someone in his position would appreciate that and would be willing to provide an accommodation to get this bill passed,” he said. “All five of us have a chance to make a really good, big bill.”

The group, which also includes New Yorkers Andrew Garbarino and Mike Lawler, New Jersey Representative Tom Kean and Young Kim of California, will push to increase the deduction – currently about $10,000 for any marriage – that will bring significant savings to their constituents as part. of a large tax package, said LaLota.

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While he declined to comment on what the party would consider a welcome break, last month he said a potential plan by Trump’s economic advisers to double the tax deduction limit to $20,000 is “absurd.” He also told Bloomberg that the removal of the so-called marriage penalty – the fact that the limit is the same for both single and married taxpayers – in itself will not be enough for the “salty” five.

Spokespeople for Lawler, Garbarino and Kim confirmed their plans to attend the meeting with Trump, while Kean’s spokeswoman did not respond to a request for comment. Those who spoke to Trump did not immediately respond to a request for comment.

“I’ve been very clear, and I think my colleagues will understand, that SALT needs to be included” in the bill, Lawler said in a separate interview Tuesday. “There is already an understanding that it is, so I don’t care.”

Because of its small majority in the House, the GOP can only lose the support of a couple of congressional Republicans to advance the bill through a process known as budget reconciliation. The process, which would allow the GOP to pass legislation with only Republican votes, depends on near-universal agreement among its majority in the House and Senate. That puts a lot of pressure on Trump and Republican leaders to negotiate a package that pleases their far right and members from the New York City and Southern California areas, which is crucial to increasing SALT’s political traction.

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“The statistics show that any small group of members can block anything Republican,” he said. “And that statistic is not only important to the SALT discussion, but to almost anything and everything we do here in this city. That said, the fact that President Trump is strong on SALT and wants to fix us and is inviting us to Mar-a-Lago to be a part of this fix gives me great hope. “

Although it was Trump who ended the tax break as part of his 2017 signature legislation, during his campaign he vowed to extend the limit. LaLota praised the change of heart in lawmakers’ efforts to improve relations with Trump.

In addition to taxes, LaLota said he and Lawler also plan to discuss Trump’s New York City congestion pricing, which went into effect this week and charges drivers $9 to enter Manhattan’s central business district. Trump had said he opposed the money.

LaLota said the fee especially hurts the residents of his and Lawler’s districts, who “shouldn’t be the pigs in the bloated MTA.”

—Courtesy of Billy House.

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