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SALT cap debate could delay GOP tax bill, New York Republican says

New York Republicans spearhead renewed push to permanently remove the SALT cap
New York Republicans spearhead renewed push to permanently remove the SALT cap 02:04

LONG ISLAND -- There's a renewed push in Washington to permanently remove the SALT cap -- the $10,000 limit on deductions for state and local taxes.

One Long Island congressman is part of a group planning to hold up the nation's tax bill if the cap is not nixed.

There is a deadline approaching as the SALT cap expires this year. A tax bill will be formulated in early April.   

Rep. Nick Lalota and the "five very salty Republicans"

Eight years after President Trump imposed the SALT cap, a handful of Republicans plan to buck their own party to fix it. Suffolk County Rep. Nick Lalota says they have leverage in the House, where Republicans have only a three-vote advantage.

"There are five very salty Republicans who have committed, like me, to block our own party's bill unless it has a reasonable increase on the SALT cap," Lalota said at a news conference, later adding, "Our party needs our votes and we are not going to vote on anything unless there is a reasonable increase in the state and local deduction."

In addition to Lalota, fellow New York congressmen Mike Lawler and Andrew Garbarino, plus New Jersey Rep. Tom Kean Jr. and California Rep. Young Kim have joined the bipartisan effort to end what many call unfair double taxation.

Reaction to ending the SALT cap mixed

The Ratways pay $17,000 in property taxes on their Smithtown ranch home, but only $10,000 of that can be deducted from their income tax.

"We are average people. We are not rich," Andrew Ratway said.

"Repeal the tax cap. We can't afford it. We absolutely can't afford it and we really don't want to leave Long Island," Judy Ratway added.

However, opponents in Congress see SALT deductions as welfare for millionaires in mismanaged blue states.

"Is it fair to ask a hard-working Texan to shoulder the financial burden of another state's poor policy choices?" Rep. Keith Self said.

"When other states need things, I have yet to ever see anyone from New York say no," Brookhaven Supervisor Dan Panico said.

"This is a middle class attack. Having this cap this is not affecting the millionaire. It's affecting the person who is the police officer, the nurse, the doctor," added Jason Richberg, minority leader of the Suffolk County Legislature.

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