Rep. Mike Lawler, R-N.Y., is vowing to tank the Republican’s ‘big, beautiful bill’ if the Senate rescinds the proposed $40,000 cap on state and local tax (SALT) deduction.
Lawler spoke on behalf of a united pack of blue-state Republicans, whose no votes could sink the funding megabill when the Senate’s version is punted back over to the House of Representatives next month.
“I’ve been very clear with leadership all this past week that if the Senate changes the SALT deduction in any way, I will be a no,” Lawler said. “I’m not going to buckle on that.”
Lawler is a part of a group of Republicans from high-tax states who say the cap on SALT, which allows taxpayers to deduct some state and local taxes from their tax returns, disproportionately penalizes individuals in their districts.
The group, which also includes New York Republican Reps. Nick Lalota, Andrew Garbarino and Elise Stefanik, entered into high-stakes negotiations with Speaker of the House Mike Johnson, R-La., last month when they refused to vote the budget reconciliation bill through the House if the SALT cap wasn’t raised.
After refusing a $30,000 cap offer from Johnson, the group compromised on $40,000, quadruple the current $10,000 cap, and helped vote the funding bill through the House.
Now, Lawler says he will “absolutely” be a no if the Senate reduces the SALT deduction in their version of the bill.
“Lifting the cap on SALT is critically important to provide middle class tax relief, and that’s exactly what we did here by negotiating a $40,000 cap,” Lawler said.
Lawler argues that the cap on SALT has been used to subsidize other provisions in the Republican funding bill, like no tax on tips or overtime and doubling the standard deduction for the next four years.
Rep. Nick Lalota, R-N.Y., another member of the SALT caucus, also warned Republicans senators of making changes to the numbers negotiated in the House.
“If the Senate waters it down by a dollar, I’m a no on the ‘One Big, Beautiful Bill,’” Lalota said.
Reps. Andrew Garbarino, R-N.Y., and Young Kim, R-Calif., underscored the SALT caucus’ power to sink the bill in a joint statement.
“The Senate would be remiss to forget that the path to 218 – and delivering for the American people – runs through the SALT Caucus.”
The budget bill faces internal negotiations in the Senate GOP conference before any provisions of the text are released.
