House Speaker Mike Johnson (R-LA) is open to SALT cap relief, according to a bloc of centrist Republicans from New York whose votes he won.
During the three-week speaker debacle, the New York lawmakers had been pushing for a candidate who would be amenable to altering the $10,000 cap on state and local tax deductions — namely, raising it or removing it. The congressmen, in vulnerable districts, have used the debate to prioritize issues most important to their constituents, including the SALT cap.
HOUSE ELECTS MIKE JOHNSON AS SPEAKER AFTER THREE WEEKS AT AN IMPASSE
The lawmakers who voted for Johnson on Wednesday are blue-state Republicans in a notoriously high-tax state and include Reps. Anthony D’Esposito (R-NY), Mike Lawler (R-NY), Andrew Garbarino (R-NY), and Nick LaLota (R-NY).
D’Esposito told the Washington Examiner after the Wednesday vote that before voting, he had “lengthy conversations” with Johnson about changes to the SALT cap, ensuring 9/11 healthcare funding is preserved, and federal flood insurance.
“Speaker Johnson has assured me throughout this process that the SALT cap will be addressed in a substantive way that benefits overtaxed Long Islanders during upcoming tax package negotiations, and I look forward to working with the Speaker to get that done,” D’Esposito said in a statement.
D’Esposito isn’t alone in getting assurances about changes to the $10,000 cap on SALT deductions imposed as part of the 2017 Trump tax overhaul.
Ahead of the vote, where Johnson was elevated to speaker in a unanimous vote from the GOP caucus, Garbarino issued a statement saying that he spoke with Johnson about “critical issues” facing his Long Island district.
“He acknowledges that providing SALT relief is critical for middle-class Americans burdened by double taxation and must be addressed in any tax bill the House considers,” he said.
La Lota, in expressing his support, said that Johnson “understands the priorities of Long Islanders and is committed to working with me to put Long Island First.”
The support for Johnson, a stalwart conservative, from the New York Republicans is a stark contrast to when Rep. Jim Jordan (R-OH), another staunch conservative, was in the running for the speaker role. D’Esposito, LaLota, Lawler, and Garbarino all voted against Jordan, partially based on the SALT deduction.
Changes to the SALT cap were made a major priority last year by a bipartisan group of lawmakers from high-tax states.
Last April, amid President Joe Biden pushing his spending agenda, several lawmakers announced the formation of a “SALT caucus,” composed of 21 Democrats and nine Republicans, with the stated goal of returning the SALT deduction in full.
While increasing or eliminating the SALT cap would undoubtedly benefit the districts of the SALT caucus, critics of raising the SALT cap argue that it disproportionately benefits the wealthy.
Eliminating or raising the SALT cap faces opposition from conservatives from low-tax states. Some more liberal lawmakers also oppose it on the basis that more SALT deductions would mainly benefit the wealthy.
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Johnson was chosen as the next speaker on Wednesday in a 220-209 vote. In a statement after he was sworn in, Johnson addressed the 22-day impasse and vowed to deliver results.
“It has been an arduous few weeks and a reminder that the House is as complicated and diverse as the people we represent. The urgency of this moment demands bold, decisive action to restore trust, advance our legislative priorities, and demonstrate good governance,” he said.