Blue-state Republicans seeking a fix to the state and local tax (SALT) deduction are fighting amongst themselves and with other GOP lawmakers about various proposals. Rep. Nicole Malliotakis (R-NY) suggested last week that a proposal to lift the current $10,000 cap on the SALT deduction should aim to cover individuals “under the $400,000-$500,000 range.” But a handful of Malliotakis’ colleagues who represent some of the wealthiest districts are strongly opposed to any income cap, arguing there are already restrictions in place. But top Republicans are increasingly interested in an income cap, especially as they’re trying to balance demands from fiscal hawks who strongly oppose the expensive SALT cap increase for taxpayers in largely blue states.
