What to Know in Washington: SALTy Republicans and Trump Talk Tax

Jan. 8, 2025, 12:02 PM UTC

Donald Trump will meet with Republicans in high-tax states to try and win their support for a tax package. But first, you should know:

  • One such GOPer is re-introducing his bill to raise that SALT cap.
  • We rounded up the list of House Republicans most likely to make life difficult for their speaker.
  • Trump’s cabinet picks will begin testifying before the Senate next week and some of them still need to shore up support.

Trump to Meet SALT-Focused Republicans

About 20 House Republicans from New York, New Jersey and California who could throw a wrench into Donald Trump’s plan to extend his 2017 tax cuts were invited to meet with the president-elect on Saturday.

Much of the group will likely attend the meeting at Mar-a-Lago to discuss increasing the $10,000 cap on state and local tax deductions, which hurts voters in the three high-tax states, according to Rep. Nick LaLota (N.Y.).

LaLota told Bloomberg the group includes four other representatives who are banding with him to push for a “reasonable” adjustment to the SALT cap. “There are five very salty Republicans — I would expect that somebody in his position would appreciate that dynamic and would want to provide an accommodation to get the bill passed,” he said.

The group including New York Reps. Andrew Garbarino and Mike Lawler, Reps. Tom Kean (N.J.) and Young Kim (Calif.) will push to expand the deduction — currently capped at $10,000 — and deliver big savings to their constituents as part of a larger tax package, LaLota said.

  • Lawler re-filed his bill to increase the current SALT cap to $100,000 for single filers and $200,000 for married couples filing jointly, Zach C. Cohen reports. Read More

Republicans can only afford to lose a couple colleagues to advance the bill through a process known as budget reconciliation. The process depends on near-universal agreement within its narrow majorities in the House and Senate. That puts pressure on Trump and GOP leaders to appease their far-right flank and members from the New York City-area and Southern California, where expanding the SALT deduction is a political priority. Read More

Read BGOV’s Congress Tracker for our breakdown of lawmakers’ agenda and the politics driving it.

Editor’s Picks

Trump’s Cabinet Picks Prepare for Senate Confirmation Hearings

President-elect Donald Trump’s nominees will begin testifying before the US Senate next week as Republicans rush to install the new cabinet soon after the Jan. 20 inauguration.

Trump’s Panama, Greenland Threats Signal Unchained Second Term

In the space of an hour, President-elect Donald Trump called for absorbing Canada, declined to rule out using military force to seize the Panama Canal and Greenland, demanded NATO allies spend 5% of GDP on defense and vowed “all hell would break loose” in the Middle East if Hamas doesn’t release Israeli hostages before he takes office.

Zuckerberg Lifts US Content Checks in a Trump-Friendly Shift

It was no accident that Meta Platforms Inc. chose Donald Trump’s favorite TV news show, Fox and Friends, to discuss its decision to ditch outside fact-checking.

Republican Troublemakers to Watch

Speaker Mike Johnson’s slim majority could empower any one Republican to derail the House floor, Maeve Sheehey reports.

His margin will temporarily fall to 217-215 when two members leave for the Trump administration. A tie vote is a defeat — that means Johnson won’t be able to afford losing a single vote on a party-line bill. Unfortunately for him, the GOP conference is notoriously chaotic.

Here are just a few members who might make Johnson’s life hell in the months ahead:

  • Chip Roy (Texas): A member of the powerful Rules Committee, Roy is one of the most prominent voices in the conservative House Freedom Caucus. An initial holdout during Johnson’s speakership vote, Roy eventually fell in line but warned the speaker about legislative red lines for keeping the gavel. Roy’s position on Rules gives him leeway to help kill procedural votes needed for party-line bills before they get to the floor.
  • Andy Harris (Md.): Maryland’s sole Republican member is the HFC’s elected chairman and a high-ranking spending hawk on the Appropriations Committee. After Johnson’s election last week, Harris’ signature topped a warning letter to the speaker from 11 Republicans — two more than needed to raise a motion to oust him.
  • Nancy Mace (S.C.): Where there’s a camera, there’s Mace. A House member since 2021, Mace initially voted to certify the results of the 2020 election and supported LGBTQ equality. Since then, she’s moved to the right on several high-profile issues and vocally opposes transgender people’s ability to use bathrooms that align with their identity. Mace last Congress was one of eight Republicans who voted to oust McCarthy as speaker. Mace’s willingness to buck leadership and difficult-to-parse policy positions make her a wild card.

For the full list, Read More

What Else We’re Reading

Biden to Push Geothermal as Key Energy Source for AI Growth

President Joe Biden’s administration plans to streamline permitting for geothermal energy development as part of a broader executive order to boost infrastructure for AI data centers, according to people familiar with the matter.

Durbin Seeks Justice Memos on Domestic Military Deployment

The Senate Judiciary Committee’s top Democrat is asking the Justice Department to rescind five opinions regarding presidential war powers issued by the Office of Legal Counsel and make public other documents regarding the president’s ability to deploy the military domestically.

Trump Border Czar Sees $86 Billion Cost to Target Migrants

President-elect Donald Trump’s pick to oversee what he has promised to be the country’s largest ever deportation effort says he will need tens of billions of dollars to carry out the mission, but it will ultimately reduce taxpayers’ burden.

US Government Is Sitting on Possible Solution to Housing Crisis

The Trump administration has proposed using federally controlled public lands for housing construction, which could help address the crisis, but the plan needs to focus on transforming smaller plots of land within urban areas and their periphery.

Wildfires Roar Near Los Angeles With Winds Seen Intensifying

Uncontrolled wildfires tore through parts of the Los Angeles region, fanned by extreme winds, forcing thousands of residents to flee and grounding firefighting aircraft.

Trump’s Doral Resort to Host Saudi-Backed LIV Golf in April

Donald Trump’s resort near Miami will host the Saudi-backed LIV Golf tournament in April, according to a schedule posted Tuesday — a signal that the president-elect’s business ties to the Middle East will carry through his second term, along with concerns over conflicts of interest.

To contact the reporters on this story: Giuseppe Macri in Washington at gmacri@bgov.com; Jeannie Baumann in Washington at jbaumann@bloombergindustry.com

To contact the editor responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com

Learn more about Bloomberg Government or Log In to keep reading:

See Breaking News in Context

Providing news, analysis, data and opportunity insights.

Already a subscriber?

Log in to keep reading or access research tools and resources.