Senate Minority Leader Chuck Schumer, a Democrat from New York, has swiftly criticized Republicans from his state, California, and New Jersey for their agreement to raise the State and Local Tax (SALT) deduction. This deduction, originally capped at $10,000, will now see an increase to $40,000 per annum. This cap was first implemented in 2017, under the Trump administration’s tax cuts.
The new $40,000 SALT limit is set to phase out for annual incomes exceeding $500,000. This cap applies equally to both individual taxpayers and married couples filing jointly. Furthermore, the income threshold and the $40,000 figure are expected to grow at a rate of 1% annually.
Schumer has labeled this SALT agreement as a “humiliating failure” for New York House Republicans, who are facing challenging reelection campaigns in 2026. On social media, Schumer claimed, “Donald Trump came to the Capitol to intimidate them, and in less than 24 hours, they have all bowed to their king. Their capitulation to Trump on SALT is a slap in the face to Long Island, the Hudson Valley, and hardworking, middle-class families across New York.”
Representatives Mike Lawler and Nick LaLota, both New York Republicans, were advocating for an increase in the cap to $60,000. Following a visit to the Capitol, former President Trump expressed his disapproval of raising the SALT cap, alleging it would advantage Democratic governors. This echoes his earlier campaign promises to raise SALT.
In a rebuttal to Schumer’s criticism, Representative Lawler countered, “You had complete control in Washington and failed to deliver anything on SALT. Not $1 more. Nothing. Nada. Zip. We are delivering a 4x increase on SALT and providing real tax relief to the middle class. After 50 years, it’s time for you to retire.”
