Chuck Darwin<p>Donald Trump posted he would <br>"get <a href="https://c.im/tags/SALT" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>SALT</span></a> back."</p><p>That's a strong indication he wants to 🔸let those in high-tax states deduct more than $10,000 from their federal taxes <br>— a limit he championed in his 2017 Tax Cuts and Jobs Act.</p><p>Republicans in blue states, especially in New York, have made repealing the SALT cap a calling card <br>and have been willing to challenge their Republican colleagues on it.</p><p>Trump's new position might make it easier for them to return to Congress.</p><p>State of the play: </p><p>The $10,000 SALT cap expires at the end of 2025.</p><p>If Trump — or Harris — does nothing, wealthy taxpayers in high-tax states will be able to deduct an unlimited amount from their federal returns, lowering the overall tax bill.</p><p>The bottom line: </p><p>Removing the $10,000 SALT cap would cost an estimated $1.2 trillion over a decade, according to the Committee for a Responsible Federal Budget.</p><p>An estimated 92% of the benefit would go to the top 10% of earners, according to CRFB.</p><p>Trump's surprise post on SALT deductions Tuesday has forced Senate Republicans into a pickle: 🔸contradict their party's leader or their old positions.</p><p>For Republican leaders, it's a taste of what's to come if Trump wins back the White House.</p><p>They'll have to harmonize their own positions<br>— in real time <br>— with a president who is constantly changing his.</p><p>Zoom in: </p><p>"We'll take a look at all the suggestions," Senate Minority Whip John Thune (R-S.D.), who is running for leader, told reporters, noting it "got litigated extensively in 2017."</p><p>"I don't think we ought to be subsidizing state taxes," Sen. <a href="https://c.im/tags/Rick" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Rick</span></a> <a href="https://c.im/tags/Scott" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Scott</span></a> (R-Fla.) told Axios repeatedly, adding Republicans need to win the House, Senate and White House first before there's a real discussion on what to do about SALT.</p><p>"I personally, at this point in time, believe we should extend the TCJA SALT provisions," said Sen. <a href="https://c.im/tags/Mike" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Mike</span></a> <a href="https://c.im/tags/Crapo" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Crapo</span></a> (R-Idaho), the ranking Republican on the Finance Committee. "But like I said, everything's up for negotiations." </p><p>The other side: </p><p>The new Trump idea does have support from Majority Leader <a href="https://c.im/tags/Chuck" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Chuck</span></a> <a href="https://c.im/tags/Schumer" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Schumer</span></a> (D-N.Y.) who said he has "always been for eliminating the cap on SALT."</p><p>Schumer called the Trump tax bill "a nasty piece of legislation," which was "aimed at the blue states."</p><p><a href="https://www.axios.com/2024/09/18/trump-salt-tax-cuts-senate" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">axios.com/2024/09/18/trump-sal</span><span class="invisible">t-tax-cuts-senate</span></a></p>