SALT Wars

house republican lawmakers
If the 2025 tax push mirrors Trump’s successful 2017 effort, the bill will likely be a partisan, monoparty product, so the red-on-red fight is the key to understanding where this is all headed. Photo: Chip Somodevilla/Getty Images
Abby Livingston
November 22, 2024

The last time Republicans held a power trifecta in Washington, at the onset of Donald Trump’s first tour in the White House, the party celebrated with a sweeping, $1.5 trillion package of tax cuts and giveaways that dramatically lowered the burden for corporations and most, but not all, Americans. One notable exception was wealthy households in high-tax states like New York, New Jersey, and California, who benefited from being able to deduct state and local taxes from their final, federal bill. At the time, Republican lawmakers from those states fretted that capping the popular SALT deduction at $10,000 would contribute to an electoral wipeout in the 2018 midterms.