Mon Jan 13 21:40:00 UTC 2025: **Trump Signals Support for SALT Deduction Increase, Opposes NYC Congestion Pricing**

**New York, NY –** President-elect Donald Trump has indicated his support for raising the state and local tax (SALT) deduction cap, a key demand of several House Republicans from high-tax states like New York and California. This comes as the GOP prepares for negotiations on a major conservative policy overhaul.

During meetings at Mar-a-Lago, Trump met with members of the House SALT Caucus, who have been pushing to repeal the $10,000 limit on SALT deductions imposed in 2017. Rep. Nicole Malliotakis, R-NY, stated that Trump “supports our efforts” and understands the burden high taxes place on middle-class families. While acknowledging opposition from other Republicans concerned about the tax break benefiting the wealthy, Trump reportedly tasked the caucus with finding a compromise that could garner enough votes to pass. Malliotakis indicated that a complete repeal is unlikely, with the focus remaining on relief for middle-class families.

Rep. Mike Lawler, R-NY, emphasized that raising the SALT cap is a “red line” for his support of the broader GOP legislative agenda. He confirmed Trump’s agreement on this issue. The Republicans hold a razor-thin majority in the House, meaning little room for dissent.

Beyond SALT, Trump also pledged to assist New York Republicans in their fight against the newly implemented congestion pricing scheme in Manhattan. Malliotakis stated that Trump recognizes the policy’s unfairness and its potential negative economic impact, and is exploring legal options to overturn it. The congestion pricing plan has already taken effect and levies surcharges for drivers in parts of Manhattan.

These discussions form part of Republicans’ broader strategy to pass sweeping legislation through the budget reconciliation process, which allows for passage with a simple majority. The outcome of the SALT debate and the eventual legislative package will be closely watched, given the narrow Republican majority and the significance of these issues for high-tax states.

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