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SALT cap surfaces as a top flashpoint, with members divided on who pays
Summary
Members from high-tax states urged restoring or raising the $10,000 state-and-local tax (SALT) deduction cap, while lawmakers from low-tax states warned such relief would subsidize higher-spending states. The hearing featured competing fairness and fiscal arguments.
Multiple members used the Ways and Means member day to press for reversing the SALT cap imposed by the 2017 tax law. Representative Gillen (NY), Representative Lalgogho (Long Island/NY), Representative Kiley (CA), Representative Lawler (NY) and others described SALT as “double taxation” that disproportionately hits homeowners in high-property-tax jurisdictions.
Representative Gillen said restoring the full SALT deduction would return fairness to taxpayers who face particularly high property taxes on Long Island; Representative Lalgogho noted average Nassau County SALT deductions before the cap were about $26,259 and argued the cap “made life even more expensive.” Representative Kevin Kiley told the panel that the average itemized SALT burden in counties in his California district ranged from $12,000 to $28,000 in 2021.
Opposing view: Several members warned raising the SALT cap would shift fiscal burdens to residents of low-tax states. Representative Roger Marshall (not present as a speaker at this hearing) was cited in debate-style remarks; Representative Self from Texas urged fiscal accountability for high-tax states and argued that nearly 90% of the benefit of removing the SALT cap would flow to households earning over $200,000 per year (citing Tax Policy Center analyses).
Why it matters: Restoring or raising the SALT cap is politically salient for representatives from high-tax states because it affects homeownership affordability and local government finances; opponents view it as an expensive targeted tax break that rewards states with higher spending.
Next steps noted at hearing: Members said they expect the Ways and Means Committee to consider SALT options as it drafts reconciliation language — including proposals that would increase the cap, eliminate a marriage penalty, or craft targeted relief — but no legislative text or committee vote was offered during the member-day session.
