GOP charges ahead despite deep divisions on Medicaid, SALT
House Republicans are charging ahead with deep Medicaid cuts and an extension of the 2017 tax cuts, two policies at the heart of President Trump’s domestic agenda that are showcasing fierce divisions within the GOP conference.
Both policy issues pit GOP moderates against conservatives, and threaten to delay action on the massive budget reconciliation package they’re hoping to get to Trump’s desk before August.
The divisions were hardly resolved in recent days when the House Ways and Means Committee introduced the details of its proposed tax-code changes, and the House Energy and Commerce Committee unveiled its designs for Medicaid cuts.
The tax proposal would hike the cap on the state and local tax (SALT) tax deduction — one of the most contentious parts of the entire sprawling package — from $10,000 to $30,000 for those earning less than $400,000. For wealthier households, the cap is gradually reduced according to income.
That proposal was rejected last week by moderate Republicans in high-income states, who are demanding the cap go much higher. It is far lower than the proposal key lawmakers floated earlier in the day: $62,000 for single filers and $124,000 for joint filers.
Those stakeholders were quick to reject the panel’s proposition, leaving onlookers to wonder how GOP leaders intend to bring them on board.
“Still a hell no,” Rep. Nick LaLota (R-N.Y.), one of the most vocal supporters of increasing the SALT deduction cap, wrote on the social platform X shortly after the panel unveiled its portion of the bill.
Rep. Mike Lawler (R-N.Y.), another key advocate for raising the SALT cap, delivered a similar warning.
"I've been very clear from the very beginning, if there was not a fix for SALT in the bill I would be a no. This proposal by the Ways and Means Committee and the Ways and Means Chairman does not address the issue," he told The Hill on NewsNation.
In a statement, he said, “I look forward to continuing to negotiate with leadership and the administration to provide real tax relief for my........
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