New York Republicans say Republicans have little deals on salt

The leading Republican member of the New York delegation said Tuesday that Republican lawmakers have not reached a deal to help residents in high-income states lower their tax bills.

“We probably only are on the 25-yard line,” said Rep. Nick Lalota (RN.Y.). “We have a lot of conversations and have exchanged a lot of ideas. But we are far from a particular deal. ”

The debate on state and local taxes for federal deductions has become a key point as GOP leaders adopt President Trump’s ambitious domestic agenda in the coming months.

Trump’s 2017 tax reform law imposed a $10,000 cap on the upper limit of salt benefits and caused disproportionate attacks among taxpayers in high-income states – who also tend to have higher local and state tax rates. The move has sparked roars from lawmakers on both sides of the states, warning that it would punish middle-class families, not just wealthier taxpayers designed to target.

Lalota is one of the critics who helps his East Long Island voters in his own party. He said his challenge is attracting Republican leaders and Republicans in the way and means committee to “understand salt is a matter of fairness.”

“It’s not a subsidy. In fact, New York sent more taxes to the federal government than we’re back,” he said. “Salt – the high salt hat – is one of the ways we make this inequality more equitable.”

Democrats have long believed that Trump and the Republicans imposed salt caps in 2017, at least in part to punish Trump’s political enemies in wealthier blue countries such as New York, California, Virginia and Illinois.

But it also helps increase Treasury revenue and helps reduce the cost of the tax package – same budget considerations, Republican leaders once again seek ways to extend the 2017 tax cuts while minimizing the impact on deficit spending.

In this debate, some lawmakers have proposed compromises, requiring new income thresholds to be applied to current salt caps so that only higher income households (e.g. households earning more than $400,000) are bound by the cap. But Lalotta rejected the idea altogether, saying the regional income difference means New Yorkers will still be treated unfairly.

“Like the original salt hat, it unfairly punishes high-income blue states like me,” he said. “Missouri may have $40,000 in wealth. Suffolk County is not rich. So, I think this approach just exacerbates the anti-blue blue state approach that existed eight years ago.”

The time between the two sides has been used up and an agreement cannot be reached. The way and means of Trump’s tax portion of “large bills” is expected to be considered next week.

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