Tensions are rising among House Republicans over the state and local tax (SALT) deduction cap. Rep. Mike Lawler (R-N.Y.) strongly criticized tax chief Jason Smith for resisting negotiations on raising the cap. With a major tax bill nearing a vote, discontent from blue-state Republicans could complicate GOP legislative priorities.
Lawler Slams GOP Tax Chief Over SALT Deduction Talks
Rep. Mike Lawler, a Republican from New York, publicly criticized House Ways and Means Committee Chair Jason Smith (R-Mo.) on Tuesday for his handling of negotiations over the state and local tax (SALT) deduction cap. Speaking bluntly to reporters, Lawler remarked that Smith “wouldn’t have a fucking gavel” without support from the SALT caucus, which includes Republicans from high-tax states like New York, New Jersey, and California.
Lawler’s comments followed similar frustration voiced a day earlier by Rep. Nick LaLota (R-N.Y.), who accused Smith of negotiating in bad faith.
Dispute Over What Counts as “Negotiation”
Lawler questioned whether any genuine negotiation had taken place, noting that Smith has maintained he only needs to negotiate with his committee. Lawler called this view misleading and challenged House Speaker Mike Johnson’s characterization of the legislative talks.
A spokesperson for Chair Smith did not respond to requests for comment at the time of publication.
What’s at Stake: The SALT Deduction
The SALT deduction allows taxpayers to deduct state and local taxes from their federal tax bill — a significant benefit in high-tax states. The deduction was capped at $10,000 in 2017, sparking long-standing bipartisan opposition from lawmakers in wealthier states. Many Republicans from blue states are pushing to raise or eliminate this cap.
The new GOP tax bill proposes lifting the cap to $30,000 but includes an income phase-out for earners making over $400,000. Lawler and LaLota have rejected this proposal as inadequate, signaling continued tension within the party.
High-Stakes Timing Before Committee Vote
The House Ways and Means Committee began debating the GOP’s large tax package on Tuesday afternoon. With a committee vote imminent, frustration from New York and other blue-state Republicans is spilling into the open. Speaker Johnson has described the $30,000 cap as a placeholder, suggesting changes are still possible.
Still, Smith insists the bill has limited budgetary flexibility. “There’s a little bit of wiggle room,” he said at a press conference, “but it’s very small.”
Broader Implications for GOP Agenda
The fight over the SALT deduction is part of a larger debate on the GOP’s $3.8 trillion tax, defense, border, and energy bill. Internal party rifts over regional tax issues could stall or reshape the broader legislative package. For now, the future of the SALT deduction remains uncertain, and the pressure is building from within the Republican ranks.
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