Centrist Republicans from New York are using the opportunity provided by the competition to be the next House Speaker to bring the SALT cap back into the conversation.
Changes to the cap on state and local tax deductions — namely, raising it or removing it — have long been a priority to blue-state Republicans in high-tax states. The latest drama playing out in the Republican conference has given them a chance to emphasize their desire for changes to the $10,000 cap on SALT deductions imposed as part of the 2017 Trump tax overhaul.
Reps. Anthony D’Esposito (R-NY), Mike Lawler (R-NY), Andrew Garbarino (R-NY), and Nick LaLota (R-NY) all voted against the person the GOP conference chose to nominate as speaker, Rep. Jim Jordan (R-OH). Their votes, along with several others, were enough to deny Jordan the speaker’s gavel, and some of the New York Republicans have cited SALT in their opposition.
“I hinge my decision-making on what is in the best interest of Long Islanders, and my vote for Speaker will go to a candidate who, among other things, understands my district’s need for SALT cap relief,” D’Esposito told the Washington Examiner.
D’Esposito’s comment comes after the second vote on Jordan to be speaker was held. Jordan can only afford to lose about four votes from his conference and lost 20 votes during the first round of voting on Tuesday and 22 after the second vote on Wednesday.
D’Esposito voted for former Rep. Lee Zeldin (R-NY), a popular political figure from Long Island who ran a highly publicized campaign for governor last year. Likewise, LaLota, who represents Zeldin’s House district, also voted for the former congressman.
On Tuesday afternoon, he posted a picture on social media of a list of priorities he is looking for in a potential speaker. He wrote that he has “been upfront about withholding my support without reliable commitments on these important issues.”
The first item on the handwritten list was keeping the government from shutting down while cutting spending, followed by SALT changes. He also listed safeguarding 9/11 victim support funding and flood insurance as priorities.
“Rather than cast my ballot for a Speaker-Candidate who doesn’t have the votes and hasn’t demonstrated support for SALT for my constituents nor a plan to keep our government open while advancing the Commitment to America,” D’Esposito said on X, formerly known as Twitter, in announcing his decision to vote for Zeldin.
Garbarino, who also represents a Long Island district, emphasized in a Wednesday post on X after he voted for Zeldin that he “will always stand up for New York priorities,” one of which he has made clear is SALT reform.
“We need a Speaker who understands New York priorities such as funding 9/11 healthcare, prioritizing disaster and emergency relief, and providing SALT relief to middle-class Long Islanders who are burdened by double taxation,” he said in a statement the day before.
All three congressmen are part of the so-called SALT caucus, which consists of Republicans and Democrats from high-tax states like New York and California. They have been pushing to have the cap eliminated or at least raised.
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.
A study from the Tax Policy Center found that only about 9% of households would benefit from a full repeal of the cap. Additionally, TPC found that more than 96% of the tax cut would go to the highest-income 20% of households.
The Washington Examiner reached out to a Jordan spokesman about comment for this story but didn’t receive an immediate response.
It is unclear whether there would be another speaker vote on Wednesday, given just how big the current gap in support is for Jordan, whose candidacy for speaker was endorsed by former President Donald Trump.
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Other Republicans who voted against Jordan in both rounds include: