New York Republican Rep. Mike Lawler told Bloomberg on Monday that he will not support President Trump’s “big, beautiful” budget reconciliation bill unless the State and Local tax (SALT) deduction is massively increased from $ 10,000 to at least, “$ 100,000 for individuals, $ 200,000 for married couples.” “Remember, when the Tax Cuts and Jobs Act expires at the end of this year, SALT comes back unlimited,” he said. “The problem would be you would have other provisions, including the alternative minimum tax, that would come back, and the standard deduction would be cut in half. So, it’s incumbent on everybody to negotiate in good faith.” “We’re going to negotiate in good faith and ultimately get a bill passed because we have to. We need to get a bill passed that provides real tax relief to Americans all across this country. That’s why we are willing to negotiate on the issue of SALT.”

BLOOMBERG: As it stands right now, is this package going to get your vote? REP. MIKE LAWLER: Look, as I said from the very beginning, I would not support a tax bill that does not adequately address the unfair $ 10,000 cap that was put in place under the 2017 Tax Cuts and Jobs Act. Remember, when the Tax Cuts and Jobs Act expires at the end of this year, SALT comes back unlimited. In order for there to be a tax bill that would actually put a cap in place, it has to adequately address the concerns of my constituents. There are other provisions, obviously, that we want to make sure do not come back-for instance, the alternative minimum tax. That’s why we’re willing to negotiate and have been trying to do that in good faith for months. But this bill, as written with a $ 30,000 cap for those making under $ 400,000, is just woefully inadequate. So, no, this does not have my support. It will not have my support. If this bill comes to the floor for a vote, I will vote no. It’s incumbent on leadership and the administration, obviously, to negotiate with us in good faith and get to a number that adequately addresses the concerns that we have outlined. BLOOMBERG: So, if $ 30,000 is not adequate for that number, Congressman, what is? REP. MIKE LAWLER: I introduced a bill that would raise the cap to $ 100,000 for individuals, $ 200,000 for married couples. We had a discussion earlier today with leadership. I’m not going to get into the specific numbers, but suffice it to say, it was made very clear that this number, as presented, is a hard no from all of us who have been negotiating on this from the beginning. We will continue to work in good faith with leadership, with the administration, to get this done. But we need to have an honest and serious discussion about the issue, and thus far, that has not happened. BLOOMBERG: Congressman, there is going to be some give and take in all of this. What are you looking for others to perhaps give to get you to where you want to be? $ 100,000 may be a nonstarter for some of your colleagues, but what would they be willing to give up to let you have a much higher level on SALT? REP. MIKE LAWLER: Remember, I’ll remind everyone, including my colleagues, if nothing passes, SALT comes back unlimited. Now, the problem would be you would have other provisions, including the alternative minimum tax, that would come back, and the standard deduction would be cut in half. So, it’s incumbent on everybody to negotiate in good faith, which is why we’ve been willing to — obviously — continue with a cap on the full deductibility. But the fact is that SALT was a pay-for for other provisions of the Tax Cuts and Jobs Act. To somehow try to play both sides of this and say, Well, it’s a pay-for, but you have to pay for the pay-for-that’s a joke. The fact is that putting a cap in place serves as a pay-for, so we don’t have to find a dime for it. What we are putting in place with a cap helps pay for other provisions within the tax bill. We’re simply asking for fairness as we negotiate. BLOOMBERG: What we saw released this afternoon does not include the increase in the top rate for the wealthiest earners. This is something that the President had gotten behind. Is that something you and your Republican colleagues are leaving perhaps in your hip pocket if you need to find savings to support an increase in the cap or other priorities by the party? REP. MIKE LAWLER: Look, obviously, this is a continuing negotiation, and there’s a lot of things still left to be decided and discussed. Certainly, revenue is a key part of this bill because the objective is to make sure that, as we find savings in spending, we’re not adding to the deficit. There’s a lot of game left to be played here. We’re going to negotiate in good faith and ultimately get a bill passed because we have to. We need to get a bill passed that provides real tax relief to Americans all across this country. That’s why we are willing to negotiate on the issue of SALT. All of these other issues will work themselves out as we work through it and make a final determination with respect to revenue, taxes, and savings.

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