Donald Trump has announced his intention to reverse a key aspect of his 2017 tax reform as he seeks support from suburban voters in Democratic strongholds like New York and California ahead of the upcoming presidential election. In a post on his Truth Social platform, the former president expressed confidence in winning New York’s 28 Electoral College votes and promised to “get Salt back” and “lower your taxes.” This refers to the practice of deducting state and local taxes, known as “salt,” including property taxes, from federal tax bills.
However, Trump’s own tax changes in 2017 limited these deductions to $10,000 per year. This move negatively impacted homeowners in high-tax areas where local property taxes can be much higher. Now, Trump has indicated that he plans to reverse these changes and expand on the already substantial tax cuts he is proposing during his campaign.
In recent weeks, Trump has made additional promises such as eliminating taxes on tips, overtime pay, and government pension benefits. He also plans to reduce the corporate tax rate from 21% to 15% and extend individual income tax cuts implemented in 2017.
The decision by Trump could potentially cost $1.2 trillion over a decade according to estimates by the Committee for a Responsible Federal Budget think-tank. The announcement came just before a campaign rally on Long Island where high property tax rates are prevalent.
Although New York is not considered a battleground state and was won by Joe Biden with a significant margin in the previous election, congressional races in its suburbs are crucial for Republicans aiming to maintain control of the House of Representatives. Concerns about crime and public safety helped Republicans gain four Democratic congressional seats during the midterms in 2022.
Democrats have dismissed Trump’s latest offer as unlikely to sway voters in New York. They argue that it was under Trump’s administration that Salt deductions were limited initially. Despite some Democratic politicians advocating for removing this cap on deductions entirely, there is division within both parties regarding this issue.
It should be noted that even if elected president again, any changes proposed by Trump would require approval from Congress.
