SALT Tax Increase That Burned Blue States is Targeted by Democrats – The New York Times
WASHINGTON The House voted on Thursday to temporarily eliminate a tax increase on some high-earning residents of states like California and New York that was included in President Trumps 2017 tax overhaul, with some Republicans joining Democrats in support.
The bill would repeal a cap on a popular tax break that prevented taxpayers from deducting more than $10,000 in state and local taxes from their federal income taxes. It paired that repeal which would in effect be a tax cut for upper earners in high-tax states with an increase on the highest earners across the country by raising the top income tax rate to 39.6 percent from 37 percent.
In a procedural twist, Democrats agreed to a Republican amendment that would limit the bills benefits for blue-state billionaires. It would maintain the so-called SALT cap on deductions for taxpayers earning more than $100 million per year, and direct the saved money to a $500 tax break for teachers and first responders. Representative Mike Thompson, Democrat of California, said the motion was accepted in the spirit of the holiday season.
The bill, which was approved by a vote of 218 to 206, has no chance of passing the Republican-controlled Senate, and Mr. Trump has threatened to veto it.
But it was hailed as a victory by its Democratic champions, many of whom were elected last year in wealthy, suburban areas where the SALT cap had raised some voters taxes.
Its about fairness, Representative Thomas Suozzi, Democrat of New York and the lead sponsor of the legislation, said in an interview. Do we want people moving away from New York to go to Florida because they lost their state and local tax deduction?
When those residents move out of state, Mr. Suozzi said, the remaining lower- and middle-income families are left holding the bag.
The 2017 Trump tax law limited deductions for state and local taxes paid, like income and property taxes, to $10,000 per household per year. That resulted in net tax increases for a slice of high-earning residents of areas with high income or property taxes, which tend to be concentrated in large metropolitan areas like New York City and high-tax states like New Jersey and California.
The SALT cap was tucked into the 2017 tax overhaul in part to help finance it and reduce its impact on the deficit. The bill passed on Thursday includes some budgetary gymnastics in order to avoid adding to the federal debt. It would repeal the SALT cap for three years while raising the top income tax rate for six years. Because of how Republicans structured the 2017 law, the SALT cap is set to expire and the top rate is set to rise on their own at the end of 2025.
Voter anger toward the SALT cap in certain areas appears to have helped lift Democrats in the 2018 midterms. In the months leading up to the election, the online research platform SurveyMonkey interviewed nearly 30,000 registered voters about their opinions on the tax law, their voting intentions and other topics. A New York Times analysis of that data suggests that the SALT cap may have had a significant effect on voters views of the tax law and perhaps even on how they voted to a degree that could have influenced the narrowest races in those districts.
Efforts to repeal the cap have emerged as a division among Democrats who have long criticized Republicans for cutting taxes to favor the rich.
Many liberal policy analysts oppose raising the SALT cap, because it would mostly benefit high earners and they would rather use the money for spending programs to help the poor and middle class.
Repealing the cap should not be a top priority, Seth Hanlon, a senior fellow at the liberal Center for American Progress, wrote in an online column this month.
If policymakers are concerned with the effect of the SALT cap on middle-class families, he wrote, there are options to address it without providing enormous windfalls for the wealthy.
At least one leading presidential contender, former Vice President Joseph R. Biden Jr., favors eliminating the cap.
This bill truly is a tax cut for the few, said Representative Kevin Brady of Texas, the top Republican on the House Ways and Means Committee. What Democrats are proposing today is regressive.
Mr. Suozzi said on Thursday that the repeal of the cap would be 100 percent paid for by the wealthiest Americans, by raising the top income tax rate.
Read the rest here:
SALT Tax Increase That Burned Blue States is Targeted by Democrats - The New York Times
- McMaster to give last State of the State. Democrat running for governor will give response. - scdailygazette.com - January 26th, 2026 [January 26th, 2026]
- Democrat blasts HHS for creating confusion in cutting, then reinstating SAMHSA grants - cherokeephoenix.org - January 26th, 2026 [January 26th, 2026]
- Swing-District Democrat Says He Failed by Voting for DHS Funding Bill - NOTUS News of the United States - January 26th, 2026 [January 26th, 2026]
- As Health Costs Soar, A Democrat Steps In to Shield His Insurance Donors - The Lever - January 26th, 2026 [January 26th, 2026]
- Dan Haar: A prominent CT Democrat pushes to abolish ICE as others show anger but stop short - ctinsider.com - January 26th, 2026 [January 26th, 2026]
- Alabama's wannabe politicians and the Alabama Democrat Party have some terrible takes on Minnesota - yellowhammernews.com - January 26th, 2026 [January 26th, 2026]
- Trump Pardoned Democrat Supports ICE Funding While Brother Faces Felony Charges and Another Looming Federal Shutdown - elpasoheraldpost.com - January 26th, 2026 [January 26th, 2026]
- Kidd announces bid for Congress, this time as a Democrat - kolotv.com - January 22nd, 2026 [January 22nd, 2026]
- Democrat House Rep. Ed DeLaney calls for legislative probe into IEDC activities - ibj.com - January 22nd, 2026 [January 22nd, 2026]
- Scoop: Democrat introduces bill to shut down Trump's Greenland ambitions - Axios - January 14th, 2026 [January 14th, 2026]
- Letter: The GOP has departed from sanity. I have become a Democrat because of Trump. - The Salt Lake Tribune - January 14th, 2026 [January 14th, 2026]
- Axios: Democrat Introduces Bill to Shut Down Trump's Greenland Ambitions - Congressman Jimmy Gomez (.gov) - January 14th, 2026 [January 14th, 2026]
- ICYMI: New Dem Workforce & Education Agenda in the News - New Democrat Coalition (.gov) - January 14th, 2026 [January 14th, 2026]
- Breaking News: Senator Elissa Slotkin, Democrat of Michigan, says she has learned that federal prosecutors are investigating her after she took part... - January 14th, 2026 [January 14th, 2026]
- Democrat Seth Clark announces bid for Georgia lieutenant governor - The Red & Black - January 14th, 2026 [January 14th, 2026]
- Kansas Legislature launches 2026 session with Democrat Laura Kelly in final year as governor - News From The States - January 14th, 2026 [January 14th, 2026]
- Why this progressive Democrat is settling for a flawed moderate in the race against Scott Perry | Opinion - PennLive.com - January 14th, 2026 [January 14th, 2026]
- Democratic Party must grapple with excesses of identity politics, Democrat consultant says - Fox News - January 11th, 2026 [January 11th, 2026]
- Democrat says Trump is stealing from taxpayers and could be impeached if Republicans lose control of Congress - The Independent - January 11th, 2026 [January 11th, 2026]
- Bowen Yang Apologizes After Crossing Firebrand Democrat - The Daily Beast - January 11th, 2026 [January 11th, 2026]
- Senator Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, raised questions on Sunday about whether a military strike to... - January 11th, 2026 [January 11th, 2026]
- Owners have discretion to demolish dilapidated sections of former Advertiser Democrat building in Norway - newscentermaine.com - January 11th, 2026 [January 11th, 2026]
- Oklahoma House Democrat leader speaks of priorities before legislative session - KOCO - January 11th, 2026 [January 11th, 2026]
- Im a Democrat. My party is botching the reaction to Maduros capture in Miami | Column - Tampa Bay Times - January 11th, 2026 [January 11th, 2026]
- Arkansas football signs former Memphis DB Ian Williams - Northwest Arkansas Democrat-Gazette - January 11th, 2026 [January 11th, 2026]
- Matt Prater injury update: Is Bills kicker playing in playoffs today? - Democrat and Chronicle - January 11th, 2026 [January 11th, 2026]
- Rep. Steny Hoyer, the longest-serving House Democrat, will retire at the end of his term - Hawaii News Now - January 11th, 2026 [January 11th, 2026]
- Democrat says Trump is stealing from taxpayers and could be impeached if Republicans lose control of Congress - AOL.com - January 11th, 2026 [January 11th, 2026]
- Democrat wins Iowa state Senate special election, keeps GOP from reclaiming supermajority in Legislature - CBS News - January 2nd, 2026 [January 2nd, 2026]
- Congress failed to extend Obamacare subsidies. This Democrat says Trump can save them - NPR - January 2nd, 2026 [January 2nd, 2026]
- Saying backers lost their nerve, Democrat halts campaign in 9th Congressional District - Daily Herald - January 2nd, 2026 [January 2nd, 2026]
- Coal-fired power plant told to remain open - The Arkansas Democrat-Gazette - January 2nd, 2026 [January 2nd, 2026]
- Memories remain for Bills finale in The Ralph - The Arkansas Democrat-Gazette - January 2nd, 2026 [January 2nd, 2026]
- Democrat forced out as chair of EFA oversight panel - UnionLeader.com - January 2nd, 2026 [January 2nd, 2026]
- Tennis year begins with action Down Under - The Arkansas Democrat-Gazette - January 2nd, 2026 [January 2nd, 2026]
- Democrat Rep. Rickey Thompson says school choice, PERS and health insurance reform are priorities for upcoming session - WCBI TV - January 2nd, 2026 [January 2nd, 2026]
- Democrat Senator explains how Trump holds the key to solving America's healthcare problem - Market Realist - January 2nd, 2026 [January 2nd, 2026]
- NC Democrat backlash could create 2 of Charlotte areas competitive 2026 elections - Charlotte Observer - January 2nd, 2026 [January 2nd, 2026]
- Press Democrat photographer John Burgesss photos of the year 2025 - The Press Democrat - December 29th, 2025 [December 29th, 2025]
- Opinion: The kind of Democrat Connecticut needs - Hartford Courant - December 29th, 2025 [December 29th, 2025]
- Rain dampens the party but not the Bills fans' spirit - Democrat and Chronicle - December 29th, 2025 [December 29th, 2025]
- Bills WR group might be even worse than you realize - Democrat and Chronicle - December 29th, 2025 [December 29th, 2025]
- Buffalo Bills release three-time Super Bowl champion after two games - Democrat and Chronicle - December 29th, 2025 [December 29th, 2025]
- Football: Press Democrat offensive player of the year, All-PD teams: Beau David, Ukiah - The Press Democrat - December 21st, 2025 [December 21st, 2025]
- ONBOOKS | OPINION: 2025 the books that mattered - The Arkansas Democrat-Gazette - December 21st, 2025 [December 21st, 2025]
- Electioneering accusation against high-ranking N.H. Democrat cleared - The Boston Globe - December 21st, 2025 [December 21st, 2025]
- Three-vehicle crash sends truck through windows of local vintage shop - The Press Democrat - December 21st, 2025 [December 21st, 2025]
- Outgoing Democrat who beat GOP lawmaker running for one of Alabamas top offices - AL.com - December 21st, 2025 [December 21st, 2025]
- Moderate Democrat would go tougher on permitting - E&E News by POLITICO - December 2nd, 2025 [December 2nd, 2025]
- Scoop: House Democrat "looking into" articles of impeachment against Pete Hegseth - Axios - December 2nd, 2025 [December 2nd, 2025]
- Democrat Mandela Barnes, a former US Senate candidate, enters the Wisconsin governor's race - Wausau Pilot & Review - December 2nd, 2025 [December 2nd, 2025]
- The Democrat who refuses to gerrymander - Politico - December 2nd, 2025 [December 2nd, 2025]
- Exclusive: The Tennessee Democrat Hoping to Prove the Blue Wave Is Real - Newsweek - December 2nd, 2025 [December 2nd, 2025]
- Hegseth says he stands by 'combat decisions' Admiral has made; Senate Democrat: Hegseth 'shifting the blame' - CNN - December 2nd, 2025 [December 2nd, 2025]
- Democrat Mandela Barnes, a former US Senate candidate, enters the Wisconsin governor's race - ClickOnDetroit | WDIV Local 4 - December 2nd, 2025 [December 2nd, 2025]
- Democrat Aftyn Behn Responds to Trump Accusation She Hates Christianity - Newsweek - December 2nd, 2025 [December 2nd, 2025]
- U.S. House Democrat Robert Garcia Announces Launch of Immigration Enforcement Dashboard to Track Incidents of Possible Abuse and Misconduct During... - November 28th, 2025 [November 28th, 2025]
- Over 4,000 take part in the 54th Webster Turkey Trot: See the photos - Democrat and Chronicle - November 28th, 2025 [November 28th, 2025]
- Each year, theres plenty to be thankful for - The Arkansas Democrat-Gazette - November 28th, 2025 [November 28th, 2025]
- Tennessee 7th District 2025 Special Election Poll: Republican Van Epps and Democrat Behn Locked In Tight Race - - Emerson Polling - November 26th, 2025 [November 26th, 2025]
- Man arrested in North Little Rock killing - The Arkansas Democrat-Gazette - November 26th, 2025 [November 26th, 2025]
- White House blames Democrat-led states for 'dragging the national average of gas prices,' which remain flat from last Thanksgiving - New York Post - November 26th, 2025 [November 26th, 2025]
- Texas Democrat a Latin Grammy winner and party recruit caught defacing Trumps Hollywood star - Yahoo - November 26th, 2025 [November 26th, 2025]
- Aftyn Behn Revelations Deal Blow to Democrat Hopes of Winning Tennessee - Newsweek - November 26th, 2025 [November 26th, 2025]
- County to investigate selling Woodland properties - Daily Democrat - November 26th, 2025 [November 26th, 2025]
- Another Democrat joins the race to represent Utahs new, left-leaning district - Utah News Dispatch - November 24th, 2025 [November 24th, 2025]
- Ex-president Clinton says this Democrat has what it takes to be president - AL.com - November 24th, 2025 [November 24th, 2025]
- This Is The Best Democrat To Go Head-To-Head With Vance In 2028 (And It's Not Newsom): Strategist - Forbes - November 24th, 2025 [November 24th, 2025]
- Why this California Democrat broke with his party to end the government shutdown - Los Angeles Times - November 18th, 2025 [November 18th, 2025]
- Another notable Democrat likely to announce run for California governor, report says - KTLA - November 18th, 2025 [November 18th, 2025]
- Opinion | The Democrat Who Split MAGA Over the Epstein Files - The New York Times - November 18th, 2025 [November 18th, 2025]
- House Democrat pushing for release of full Epstein files predicts contents will shock the conscience of this country - New York Post - November 18th, 2025 [November 18th, 2025]
- Michelle Newman will join Bill Cost as the second Democrat on Newark City Council for 2026 - The Newark Advocate - November 18th, 2025 [November 18th, 2025]
- Here's how you can be a part of the Democrat's 'Giving Tuesday' guide - Tallahassee Democrat - November 18th, 2025 [November 18th, 2025]
- Democrat Bucks Jeffries in Quest to Denounce Illinois Congressmans Succession Scheme - NOTUS News of the United States - November 18th, 2025 [November 18th, 2025]
- Why this California Democrat broke with his party to end the government shutdown - Havasu News - November 18th, 2025 [November 18th, 2025]
- Arkansas football: Razorbacks give Fitzgerald a look - Northwest Arkansas Democrat-Gazette - November 18th, 2025 [November 18th, 2025]
- Skelton: Scandal is a wildcard in governors race - The Press Democrat - November 18th, 2025 [November 18th, 2025]
- NY Democrats and Republicans unite to blast NYPA over $7.5M private plane - Democrat and Chronicle - November 18th, 2025 [November 18th, 2025]
- N. Carolina ICE operations to expand to states capital - The Arkansas Democrat-Gazette - November 18th, 2025 [November 18th, 2025]