House Republicans are under fire from one of their usual allies, The Wall Street Journal, as internal discord mounts over a controversial proposal to raise the cap on the state and local tax (SALT) deduction — a measure primarily benefiting wealthier taxpayers in high-tax states.
In a sharply worded editorial published Wednesday, the conservative-leaning Wall Street Journal criticized GOP lawmakers from swing districts, particularly in New York, for their push to lift the SALT cap from $10,000 to as much as $30,000. This proposal is part of ongoing negotiations within the Republican caucus over a broader tax package.
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Among the most vocal proponents of the increase is Rep. Mike Lawler (R-NY), who has insisted the cap must be lifted to provide relief for his constituents. However, even former President Donald Trump appears frustrated with the issue, reportedly telling Lawler to simply “drop it.”
The Wall Street Journal editorial board warned that such a move could backfire politically and economically, arguing it could give Democratic-led states a green light to raise taxes even higher without fear of political consequences.
“Few voters in other states will benefit because the standard deduction (which the House bill increases to $32,600 for couples) is bigger than their itemized deductions. Texans pay no income tax, and on average, $3,872 in property tax. Why should they subsidize Democratic spendthrifts in Albany?” the board wrote.
The board went further, suggesting that Democrats would take advantage of the increased cap to continue imposing higher state taxes, free from the usual pressure to lower them and keep top earners from leaving.
“Don’t be surprised if Democrats who run high-tax states take advantage of Republican generosity by raising taxes even more. It will also relieve political pressure on Democrats to reduce taxes to prevent high earners from fleeing. Don’t expect Gov. Kathy Hochul to send her thanks to Messrs. LaLota and Lawler,” the editorial stated.
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The irony, the board noted, is that Republicans are now pushing a policy that top Democrats like Chuck Schumer and Nancy Pelosi did not enact when they held the majority.
“Republicans are doing a favor for high-tax states that Chuck Schumer and Nancy Pelosi refused when Democrats controlled Congress in 2021 and 2022,” the board observed.
The editorial concluded with a call for Senate Republicans to reject the House GOP’s SALT proposals: “Senate Republicans can cut this SALT extortion down to size in their bill, and the country should hope they do.”
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