LaLota Continues Fight for SALT Relief Following Meeting with President Trump
SUFFOLK COUNTY, NY - Rep. Nick LaLota (R-Suffolk County) released the following statement following his meeting with President Donald Trump at Mar-A-Lago.
“This Saturday, I joined President Trump and colleagues from New York, New Jersey, and California at Mar-A-Lago to address critical issues impacting Long Island including congestion pricing and increasing the SALT cap. I left the meeting optimistic, as President Trump renewed his campaign pledge to ‘fix’ the SALT cap and support my constituents who suffer under the nation's most burdensome state and local taxes, a direct result from ineffective and incompetent Democratic governance in New York,” said LaLota. “Together, we are dedicated to devising a solution that will make life more affordable for America's middle class and improve the quality of life for hardworking Long Islanders.”
Background:
New York holds the unenviable position of having the highest effective tax burden in the nation, a direct consequence of the ballooning state budget under single-party Democratic rule since 2018. This budget, growing at a rate double that of inflation, surpasses Florida's despite New York's smaller population. The repercussions are stark: New York leads the country in residents relocating to more economically prudent states like Florida, North Carolina, and South Carolina.
This fiscal mismanagement by New York Democrats has resulted in an excessive dependence on the federal State and Local Tax (SALT) deduction. This deduction permits taxpayers to offset their federal taxable income with the amount paid in state and local taxes. However, the 2017 tax reform, spearheaded by President Trump, capped these deductions at $10,000, intensifying the tax burden for New Yorkers. This cap underscores the urgent need for fiscal reform in the state to alleviate the pressures on its taxpayers.
In 2022, despite their initial pledge of "No SALT, no deal," House Democrats did not follow through before the final vote on the Inflation Reduction Act. Throughout 2021 and 2022, Democrats controlled both chambers of Congress as well as the White House. Nevertheless, they did not address the $10,000 cap on the State and Local Tax (SALT) deduction, missing a crucial opportunity to fulfill their promises to alleviate the tax burdens on their constituents. This inaction occurred even as they held the legislative power to potentially make significant changes to the policy.
Since being sworn into office in January 2023, LaLota has been explicitly clear on his support for restoring the SALT deduction. LaLota joined the bipartisan SALT Caucus and, in March 2023, introduced the SALT Fairness and Deficit Reduction Act to effectively bring the deduction to pre-2017 levels for the overwhelming majority of taxpayers while at the same time reducing the federal deficit by raising and extending the SALT deduction cap to $60k for single filers and $120k for joint filers beginning in 2023 and lasting until December 31, 2032.
In January 2024, LaLota voted against the Wyden-Smith tax bill because it failed to include an increase on the cap to the State and Local Tax (SALT) deduction. In February 2024, LaLota introduced the SALT Marriage Penalty Elimination Act to the floor of the House. Unfortunately, 18 Republicans, together with every single House Democrat, blocked further consideration, debate, and a final vote on the measure. The SALT Marriage Penalty Elimination Act would remove the marriage penalty and raise the SALT deduction cap to $20,000 for joint filers and cap adjusted gross income at $500,000.