WASHINGTON — Donald Trump on Tuesday called for a rollback of part of his signature tax law, suggesting he would seek to restore the state and local tax deduction, commonly known as SALT, which he controversially capped in 2017 legislation.
In a post published on Truth Social ahead of his trip to Long Island, New York, the former president wrote that he would “recover SALT” and “lower his taxes” if he returned to the White House in January.
Trump did not elaborate. But the statement appears to be the first time Trump has called for rolling back part of his biggest legislative achievement, a law he has also asked to extend next year, when significant portions of it expire.
The 2017 law capped the previously unlimited federal tax deduction for state and local taxes at $10,000 per taxpayer. The measure hit Americans in high-tax blue states — particularly New York, New Jersey and California — who itemize their deductions hardest. Democrats, who represent most of those areas, fiercely opposed it at the time, accusing the Republican Party of using tax policy to wage a culture war. Some Republicans in those states also believe the $10,000 cap should be eliminated.
Trump’s remarks were the latest in a series of seemingly impulsive policy statements that have turned heads within his party. Most Republicans oppose an expansion of the SALT deduction and have criticized Democrats for pushing to lift the $10,000 cap.
“I’ve always been in favor of eliminating the cap on SALT. I think that was a nasty piece of legislation that Donald Trump supported and targeted blue states,” Senate Majority Leader Chuck Schumer, D-N.Y., said Tuesday when asked by NBC News about Trump’s comments.
Schumer has promised that if he is still majority leader next year, he will ensure that the SALT cap expires at the end of 2025.
Despite Trump’s comments, it’s far from certain that a Republican-led Congress would lift the SALT cap. Earlier this year, a group of House Republicans blocked their party from allowing a vote pushed by New York GOP members to expand the SALT deduction.
Ryan Ellis, a conservative tax policy adviser, said it would be “horrible” policy to reinstate the SALT cap, saying the revenue it generated “funded a lot of the rate cuts” in the 2017 law.
“Keeping $10,000 is fine. Dealing with the marriage penalty is fine,” Ellis said in a text message. “Removing the cap? A huge tax cut for the rich that will give you no economic growth.”
Ellis said Republicans were debating changes to the law and that he hoped Trump “ends up where the debate in the House has progressed, which is positive for everyone and rational.”
Asked by NBC News about the specifics of his plan, the Trump campaign did not elaborate. Campaign spokeswoman Karoline Leavitt offered a general statement: “President Trump sees American workers being crushed by Kamala’s (Harris) out-of-control inflationary policies. While his pro-growth and pro-energy policies will make life affordable again, President Trump will also quickly implement tax breaks for workers and seniors.”
Rep. Mike Lawler, R-N.Y., a first-term congressman seeking reelection in a competitive district, welcomed Trump’s remarks.
“Since taking office, lifting the SALT cap has been a top priority for me. I’m glad to hear that former President Trump now feels the same way,” Lawler said. written on X.
His Democratic rival, former Rep. Mondaire Jones, said they could not be trusted.
“Don’t fall for this lie,” Jones said in a statement. “Donald Trump and Mike Lawler, who helped elect him, are the reason we even have a cap on the SALT deduction. It was done to punish blue states like New York. And in his time in Congress, Lawler has done nothing to fix the problem. We need change.”
Rep. Josh Gottheimer, D-N.J., dismissed Trump’s remarks.
“President Trump gutted SALT and raised taxes on hard-working middle-class families in New Jersey. Now he wants to fix the problem he caused? And with no specifics? He’s like an arsonist volunteering for the fire department,” Gottheimer said.
Republican lobbyist Liam Donovan tweeted a meme to highlight the irony of the situation, given that Trump was responsible for restricting the SALT deduction in the first place:
The idea would add even more red ink to Trump’s already costly proposals. The anti-debt Committee for a Responsible Federal Budget has projected that eliminating the SALT cap would increase the cost of extending the 2017 tax law by $1.2 trillion.
While congressional Democrats want to expand the SALT deduction, Vice President Kamala Harris has not taken a position on the issue as a presidential candidate. Her campaign did not comment when asked about it Tuesday.
