“The New York Republican delegation owes middle class New Yorkers a full repeal of the SALT cap. This cap has cost New Yorkers as much as $12 billion every year since it took effect in 2018, robbing middle-class families of their hard-earned money.
“Republicans have drained billions directly from the pockets of their own constituents, and now it’s time for them to deliver. No excuses. No half measures. It’s all or nothing – New Yorkers deserve a full repeal.”
Kathy Hochul
New York Governor Kathy Hochul Calls for Full Repeal of SALT Cap Amid Tax Negotiations
New York Governor Kathy Hochul issued a strong statement on Wednesday, calling on the state’s Republican congressional delegation to demand a full repeal of the federal cap on state and local tax (SALT) deductions as negotiations continue with former President Donald Trump, who is poised to return to the White House.
“The New York Republican delegation owes middle-class New Yorkers a full repeal of the SALT cap,” Hochul stated. “This cap has cost New Yorkers as much as $12 billion every year since it took effect in 2018, robbing middle-class families of their hard-earned money.”
Hochul emphasized that Republicans have directly impacted their constituents’ finances and urged them to act decisively:
“No excuses. No half measures. It’s all or nothing – New Yorkers deserve a full repeal.”
Background on the SALT Cap
The cap, enacted in 2018 as part of the Tax Cuts and Jobs Act, limits taxpayers to a $10,000 deduction for state and local taxes paid. This restriction has disproportionately affected residents in high-tax, Democratic-leaning states such as New York, New Jersey, and California, where property taxes and state income taxes are higher.
As Republicans prepare to negotiate an extension of the 2017 tax cuts, which are set to expire at the end of this year, the SALT cap is expected to be a central issue in talks.
Republicans and Democrats Push for Action
Several Republicans, including Long Island Rep. Nick LaLota and Hudson Valley Rep. Mike Lawler, have been vocal in advocating for raising or eliminating the cap. Dubbed the “SALT Republicans,” they have spent the past year trying to convince more conservative colleagues to support increased deductions, but their efforts have so far fallen short.
Donald Trump previously pledged during a campaign stop on Long Island to “get SALT back” if re-elected. He is set to meet with members of the SALT Republican group in the coming days to discuss the issue further.
Meanwhile, Democratic Rep. Pat Ryan of the Hudson Valley has called for bipartisan cooperation, urging Trump to include Democrats in negotiations to address the SALT cap.
Impact on New York’s State Budget
The outcome of these negotiations is likely to influence New York’s state budget planning. Governor Hochul and other lawmakers are expected to closely monitor federal tax policies, as changes to the SALT cap could affect state revenues and the financial burden on New York’s middle-class families.
The debate over SALT deductions highlights broader concerns about tax fairness and regional disparities, with lawmakers from high-tax states pushing to protect their constituents from what they view as an unfair federal policy.
As talks continue, the pressure is on for New York’s congressional delegation—particularly Republicans—to deliver meaningful relief for taxpayers burdened by the cap.
