Senate Minority Whip John Thune recently expressed his disagreement with former President Donald Trump's proposal to reverse the cap on state and local tax deductions (SALT). This cap, a significant component of the 2017 tax bill, is set for renewal next year and has particularly impacted blue states.
Thune, a Republican hailing from South Dakota, highlighted that the alterations to SALT were implemented to offset the costs associated with the 2017 tax bill. He emphasized that these changes will be necessary for the same fiscal reasons in 2025.
During a press briefing at the Capitol, Thune noted, 'That was a big pay-for in 2017, and there will be a lot of pushback from some of our members who believe that subsidizing high-tax states is not a favorable idea.'
The SALT cap, limiting the amount individuals can deduct for state and local taxes on their federal returns to $10,000, was integrated into the Tax Cuts and Jobs Act by Trump and congressional Republicans. This measure was intended to finance other tax reductions within the law. While the cap predominantly impacts higher-income individuals in high-tax blue states who itemize their deductions, its lack of popularity has prompted some GOP representatives from these states to advocate for its removal as the party aims to retain control of the House in the upcoming election.
Thune shared his personal stance on the issue, stating, 'I'm a supporter of what we did in '17 and would like to see it extended.'
