Blue-state Republicans say they will vote against 'tax cuts 2.0' if it extends SALT cap

Blue-state Republicans say they will vote against 'tax cuts 2.0' if it extends SALT cap
© Greg Nash

Four blue-state Republicans say they will be "forced to oppose" a second round of tax cuts if the legislation includes a provision permanently extending the $10,000 cap on the state and local tax (SALT) deduction.

The House Ways and Means Committee is scheduled to consider legislation on Thursday that makes permanent the individual tax changes in President TrumpDonald John TrumpTrump: I hope voters pay attention to Dem tactics amid Kavanaugh fight South Korea leader: North Korea agrees to take steps toward denuclearization Graham calls handling of Kavanaugh allegations 'a drive-by shooting' MORE's 2017 tax law, including the SALT deduction cap. The measure is expected to receive a vote on the House floor later this month.

GOP Reps. Dan Donovan (N.Y.), Pete KingPeter (Pete) Thomas KingOn The Money: Broad coalition unites against Trump tariffs | Senate confirms new IRS chief | Median household income rose for third straight year in 2017 | Jamie Dimon's brief battle with Trump Blue-state Republicans say they will vote against 'tax cuts 2.0' if it extends SALT cap Hillicon Valley: Twitter chief faces GOP anger over bias | DOJ convenes meeting on bias claims | Rubio clashes with Alex Jones | DHS chief urges lawmakers to pass cyber bill | Sanders bill takes aim at Amazon MORE (N.Y.), Frank LoBiondoFrank Alo LoBiondoJordan hits campaign trail amid bid for Speaker On The Money: Broad coalition unites against Trump tariffs | Senate confirms new IRS chief | Median household income rose for third straight year in 2017 | Jamie Dimon's brief battle with Trump Blue-state Republicans say they will vote against 'tax cuts 2.0' if it extends SALT cap MORE (N.J.) and Chris SmithChristopher (Chris) Henry SmithFor Poland, a time for justice On The Money: Broad coalition unites against Trump tariffs | Senate confirms new IRS chief | Median household income rose for third straight year in 2017 | Jamie Dimon's brief battle with Trump CORRECTED: GOP lawmaker taken out of context in remarks on gay adoption MORE (N.J.) all voted against last year's tax-cut legislation because of the SALT deduction cap and are urging House GOP leaders to avoid cementing the provision with the new legislation.

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"We urge leadership to stop any effort to permanently cap the deduction for State and Local taxes at $10,000 or we would be forced to oppose the bill," the Republican lawmakers wrote in a letter to Speaker Paul RyanPaul Davis RyanCorey Stewart fires aide who helped bring far-right ideas to campaign: report GOP super PAC hits Randy Bryce with ad starring his brother Super PACs spend big in high-stakes midterms MORE (R-Wis.) and House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyHouse GOP bill a mixed bag for retirement savers China imposes new tariffs on billion of US goods: report Trump announces tariffs on 0B in Chinese goods MORE (R-Texas). The letter was dated Friday and released on Wednesday.

The New York and New Jersey Republicans said that the SALT deduction cap disproportionately impacts their states, which send more to the federal government in taxes than they receive back. The lawmakers expressed concerns that curbing the deduction will hurt housing prices.

"The state and local tax deduction promotes homeownership, increased funding for local infrastructure projects, public education and other state run services – programs that help foster U.S. production and reduce income inequality," the lawmakers wrote.

"Eliminating this deduction will eliminate the incentive for people to live where local government stewards the public. The cost of these local public services in communities across the country, especially in New York and New Jersey, will only increase further, negatively impacting those who benefit from these programs every day."

Besides the SALT deduction cap, the 2017 tax law's cuts to individual tax rates, increase in the standard deduction and increase in the child tax credit also are currently set to expire after 2025.

The blue-state GOP lawmakers said they support making the individual tax cuts permanent but said they "cannot sit idle as a deduction that benefits Americans across the country is permanently dismantled."

Donovan, King, LoBiondo and Smith aren't the only blue-state Republicans who have come out against the second round of tax cuts over concerns about the SALT deduction. Rep. Leonard LanceLeonard LanceBlue-state Republicans say they will vote against 'tax cuts 2.0' if it extends SALT cap House panels set up to probe indicted GOP Reps. Collins, Hunter Doubts shadow GOP push for tax cuts 2.0 MORE (R-N.J.), who also voted against the 2017 law, has said he opposes the second tax package.

Lance and Donovan are both running for reelection in competitive races, while LoBiondo is retiring.

Brady has defended the SALT deduction cap, arguing that blue-state governors should cut their states' taxes.