WASHINGTON, D.C. — Donald Trump has surprised many by reversing his stance on the State and Local Tax (SALT) deduction, a key part of his own 2017 tax reform law. Trump now promises to restore the tax break, which affects middle- and upper-class taxpayers in high-tax states like New York, New Jersey, and California—areas crucial to Republican efforts to maintain control of the House of Representatives.
Trump’s shift comes after extensive lobbying from vulnerable GOP lawmakers in these blue-state districts, where voters are feeling the burden of the SALT cap. The move isn’t expected to sway swing states in Trump’s presidential bid, but it could help embattled House Republicans in competitive districts hold onto their seats.
GOP Lawmakers See SALT as Key to House Majority
In places like Long Island, the SALT deduction is a major issue for middle- and upper-class voters. Rep. Anthony D’Esposito (R-N.Y.), who represents a district in this region, has repeatedly brought the issue to Trump’s attention. At a rally on Long Island this week, Trump vowed to “get SALT back”, a message that was met with cheers from the region’s Republican incumbents.
Rep. Nick LaLota (R-N.Y.) echoed the importance of Trump’s support, stating, “It’s evident that he understands New York is a battleground state for control of the House, even if it’s not for his own election.” The GOP hopes that by focusing on SALT, they can win over suburban voters, who helped Democrats flip the House in 2018 by pledging to restore the deduction.
With 10 GOP-held districts in New York, New Jersey, and California carried by Joe Biden in 2020, Republicans must appeal to these local concerns to retain their majority. GOP incumbents like Rep. Marc Molinaro (R-N.Y.), Rep. Mike Lawler (R-N.Y.), and Rep. Mike Garcia (R-Calif.) are all running in districts where the SALT deduction is a top issue for voters.
Trump’s Political Play
Although Trump’s reversal has energized GOP campaigns, Democrats are quick to criticize the former president for attempting to undo a problem he created. Rep. Pat Ryan (D-N.Y.) mocked Trump’s new position, saying, “It’s another piece of bullshit on top of a pile of bullshit. He’s pathologically lying.”
Laura Gillen, who is challenging D’Esposito, dismissed Trump’s announcement as a “pre-election stunt”, pointing out that the SALT cap was implemented under Trump’s administration to punish blue states. Similarly, Rep. Josh Gottheimer (D-N.J.) called Trump’s promise akin to an “arsonist volunteering at the fire department”—raising doubts that Trump would follow through on his vow to restore SALT.
Despite the criticism, Trump’s pledge has resonated with suburban voters and GOP candidates alike. Rep. Nick Langworthy (R-N.Y.) acknowledged that the message was “very welcome” and that Republicans have been eager for a fix to the SALT cap, which disproportionately hurts high-income earners in their states.
A House Divided on SALT
Within the GOP, not all members are on board with restoring the SALT deduction. Fiscal conservatives like Sen. Mike Crapo (R-Idaho) have voiced opposition to the idea, arguing that lifting the SALT cap primarily benefits wealthier Americans. This divide among Republicans reflects the broader geographical fault lines over the issue.
Meanwhile, Democrats are facing internal divisions as well, with some liberal members hesitant to support a policy seen as favoring the wealthy. This legislative gridlock has stalled any progress on the issue, even though Democrats controlled both chambers of Congress and the White House during Biden’s first two years in office.
As Election Day nears, the debate over SALT will be a key battleground in swing districts, with both parties eager to claim victory on an issue that directly impacts voters’ wallets.
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