Trump Faces GOP Rift Over SALT Deduction Cap Amid Tax Bill Negotiations

President Trump is urging Republicans, especially those from high-tax states like New York, New Jersey, and California, to accept a $30,000 cap on the state and local tax (SALT) deduction in the current tax bill despite their strong opposition. Lawmakers from these states, including Mike Lawler and Nick LaLota, remain steadfast in demanding a higher SALT cap, viewing the reconciliation package as their only chance to secure greater relief. Trump has shown frustration not only with SALT advocates but also with conservative hardliners pushing for deeper Medicaid cuts, urging unity to pass what he calls his "one big beautiful bill." Proposals have included a temporary increase of the SALT cap to $40,000 for certain income levels, but this has not swayed the SALT caucus or fiscal conservatives, who continue to hold firm on their demands. Additionally, Trump publicly criticized efforts to raise the SALT cap further, framing it as aiding Democratic governors, a stance that complicates the fragile negotiations within the GOP. This marks a significant reversal for Trump, who previously campaigned on abolishing the SALT cap altogether but now advises blue-state Republicans to accept the current limits and prioritize passing the overall bill.