A group of New York Republicans delivered a sharp rebuke Thursday to a proposed compromise on state and local tax (SALT) deductions, posing a significant challenge to House GOP efforts to advance a wide-reaching tax reform package closely tied to President Donald Trump’s legislative goals.
According to NBC News, Reps. Elise Stefanik, Andrew Garbarino, Nick LaLota, and Mike Lawler released a joint statement rejecting the offer, which they criticized as inadequate and dismissive of New York’s financial realities.
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“We reject this offer,” said the lawmakers in a united front. The proposed deal, crafted by House Speaker Mike Johnson (R-LA) and House Ways and Means Committee Chair Jason Smith (R-MO), would raise the SALT deduction cap from the current $10,000 set under Trump’s 2017 tax law to $30,000. Although this would represent a threefold increase, the New York delegation argued it still falls short of addressing the burden their constituents face.
“We’ve negotiated in good faith on SALT from the start—fighting for the taxpayers we represent in New York,” the group stated. “Yet with no notice or agreement, the Speaker and the House Ways and Means Committee unilaterally proposed a flat $30,000 SALT cap—an amount they already knew would fall short of earning our support.”
Calling the offer “insulting,” the lawmakers emphasized the broader political consequences, warning that the move “risks derailing President Trump’s One Big Beautiful Bill.” The SALT cap has long been a point of contention between lawmakers from high-tax states like New York and their colleagues from states with lower tax burdens. Critics of the cap argue that it unfairly penalizes residents of states that contribute more in federal taxes than they receive in return.
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“New Yorkers already send far more to Washington than we get back—unlike many so-called ‘low-tax’ states that depend heavily on federal largesse,” the statement continued. “A higher SALT cap isn’t a luxury. It’s a matter of fairness.”
House GOP leaders are now grappling with the fallout as they work to secure enough support for the larger tax package. The SALT issue remains “one of several difficult issues” Republicans need to resolve before the House Ways and Means Committee begins reviewing the bill next week, according to NBC News.
The backlash from within their own ranks highlights the complex balancing act Republican leaders face in pushing through major fiscal legislation, especially in a narrowly divided House.
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