Former President Donald Trump attended a press conference at Trump National Golf Club in Rancho Palos Verdes, California, on September 13, 2024, as reported by David Swanson for Reuters. On Tuesday, Trump, the Republican presidential nominee, pledged to “get SALT back” if reelected, referencing the possibility of removing the cap on state and local tax (SALT) deductions initially imposed by legislation he signed in 2017.
In an effort to garner support from New York voters against Democratic Vice President Kamala Harris in the upcoming November 5 election, Trump made this promise in a post on the social media platform, Truth Social. He argued that issues like crime, immigration, and inflation have negatively impacted New York residents, suggesting a potential shift in voter allegiance.
Trump urged voters to support him, claiming he would reverse these issues, restore the SALT deductions, and lower taxes. Despite losing New York by significant margins in both the 2016 and 2020 elections, recent polls indicate Trump trailing Harris by double digits in the state.
When asked to clarify whether Trump specifically intends to end the SALT cap he endorsed in 2017, his campaign did not provide a direct response. Instead, the campaign issued a statement through spokeswoman Karoline Leavitt, emphasizing Trump’s commitment to pro-growth and pro-energy policies aimed at making life more affordable, as well as promising tax relief for working individuals and seniors.
The Trump campaign did not respond to further inquiries from CNBC.
The SALT deduction, prior to the 2017 Tax Cuts and Jobs Act, allowed taxpayers to deduct certain state and local taxes from their federal tax returns. The reform law, considered a significant legislative achievement of Trump’s presidency, capped the deduction at $10,000 to increase federal revenue and fund other tax cuts within the bill.
Democrats have criticized the SALT cap, arguing it disproportionately affects states with higher state and local taxes, such as New York and Connecticut. Conversely, some progressives and tax policy experts support the cap, suggesting that its removal would primarily benefit wealthier individuals.
The SALT cap, along with other provisions of the 2017 tax law, is set to expire at the end of 2025. While Harris has not indicated plans to preserve the Trump-era tax cuts, she has committed not to raise taxes on Americans earning under $400,000 annually.
The nonpartisan Committee for a Responsible Federal Budget contends that repealing the SALT cap would be costly, distortionary, and regressive.
