Trump Pledges to Restore SALT Deduction, Reversing 2017 Tax Cap Decision
In a recent shift, former President Donald Trump has vowed to restore the full federal deduction for state and local taxes, known as SALT, if he is re-elected. This promise marks a reversal from the 2017 tax law that he championed, which placed a $10,000 cap on SALT deductions as part of a broader tax overhaul. Trump’s new stance comes just ahead of a scheduled rally in Long Island, New York, where the issue of SALT is particularly sensitive due to the state's high property and income taxes.
Back in 2017, Trump’s tax reform was designed to stimulate the economy through major cuts. However, one of its most controversial provisions was the cap on SALT deductions, which disproportionately impacted taxpayers in high-tax, predominantly Democratic states like New York and California. Many taxpayers in these states found themselves paying more in federal taxes due to the limited deduction on their state and local taxes. Now, Trump has taken to social media, promising to “get SALT back,” a move that’s being praised by several Republican politicians from New York who have long fought to undo the cap.
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Several Republicans in battleground districts, such as Representatives Mike Lawler and Anthony D’Esposito, were quick to applaud Trump's announcement. Lawler, for example, highlighted how the SALT cap has been a top priority for repeal since he took office. D’Esposito showed his support on social media, adding a playful salt shaker emoji to underline the issue’s significance.
On the flip side, many Democrats are pointing out the irony of Trump’s promise, given that he was the one who imposed the cap in the first place. Suffolk County congressional candidate John Avlon labeled Trump's announcement “SALT in our wounds,” implying it’s merely a political maneuver ahead of the 2024 elections. Senate Majority Leader Chuck Schumer was similarly critical, describing the 2017 tax law as a deliberate attempt to target blue states. Schumer also accused Trump of staging a political performance, suggesting that Trump’s sudden concern for SALT may be more about rallying voters than offering genuine reform.
This about-face comes as part of Trump’s broader tax agenda for the 2024 campaign, which also includes proposals to eliminate federal taxes on tips, overtime earnings, and Social Security benefits, while further lowering corporate taxes. Critics argue that ending the SALT cap, in addition to these other tax cuts, would likely add significantly to the federal deficit. Yet Trump and his supporters argue that such policies will help spur economic growth and alleviate financial pressure on working families.
The SALT deduction cap remains a critical issue for many middle- and upper-class homeowners in high-tax states, where the cost of living has been rising sharply. For these individuals, the ability to fully deduct their state and local taxes can mean thousands of dollars in savings each year. As Trump continues to position himself as a champion of tax reform, the future of SALT is likely to remain a hot-button topic, especially in swing districts like those in New York, which could ultimately determine control of Congress in the 2024 election.
As Trump’s campaign moves forward, it will be interesting to see whether this promise resonates with voters who felt the financial pinch of the 2017 tax law—and whether he can deliver on his pledge to “get SALT back.”
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