Trump to meet with Republicans key to tax negotiations and other GOP priorities
President Donald Trump will meet with a trio of moderate House Republicans at the White House on Wednesday as he courts unified GOP support for his agenda in the closely divided chamber, according to two Republicans familiar with the meeting.
The discussions are likely to include the fate of a state and local tax deduction — referred to as “SALT” — that is playing an outsize role in the debate over extending trillions of dollars worth of tax cuts enacted during Trump's previous term. The deduction is particularly important to one of the attendees, Rep. Mike Lawler (R-N.Y.), who spoke extensively about the issue at a POLITICO Playbook event on Wednesday morning.
“I will never support a tax bill that does not lift a cap on SALT,” said Lawler. “We’re going to have to work through it as a conference. This will be done through reconciliation. And ultimately, as the President said, we’re going to have one big beautiful bill.
The other two members Trump will huddle with are Reps. Don Bacon (R-Neb.) and Brian Fitzpatrick (R-Pa.), according to the sources, who were granted anonymity to share details about the private meeting. It comes as House GOP leaders are assembling a massive piece of legislation that would carry the tax cuts and Trump's other priorities on immigration and energy policy.
The three Republicans are notable moderates who recently held on to highly competitive seats in the November elections. The centrists could balk at some proposals hardliners have floated to pay for their legislative agenda, including drastic cuts for the Supplemental Nutrition Assistance Program and work requirements for Medicaid. The Trump administration and Republican leadership will likely need to heed their concerns given the GOP's slim House majority.
Lawler, in particular, has been a leader in the effort to lift the $10,000 limit on the state and local tax deduction, a concession being demanded by numerous House members from high-tax districts in New York, New Jersey and California.
“In a midterm election, this issue is going to matter in states like New York and California, and Democrats know that,” Lawler said at the POLITICO Playbook event, contending that some Republicans lost election battles over the cap on the SALT deduction.
It allows people to take a federal write-off for property, income and sales taxes they pay at the state and local levels, and is particularly important in districts with high property taxes. Eliminating the cap would be hugely expensive and opposed by most other Republicans. But a number of other options to loosen it are under consideration.
New York, New Jersey and California Republicans made a pilgrimage to Mar-a-Lago recently to reiterate their demands to lift the $10,000 cap in negotiations over a large tax bill. Trump, who vowed during the campaign to "get SALT back,” told the lawmakers to come up with a "fair number."
Other issues that could be contentious for swing state Republicans are calls to repeal green energy credits implemented by Democrats’ Inflation Reduction Act.
A document prepared by the House Budget Committee listed their repeal among potential options to pay for the GOP’s legislative agenda. Republicans are looking to extend Trump’s 2017 tax cuts and provide additional funding for border security, though there are still ongoing disagreements about whether to do so in two bills or in one “big beautiful bill” — as Trump has suggested doing and House Republicans have called for.
Topics
-
Sen. John Barrasso on Trump's second inauguration and GOP priorities
As President-elect Donald Trump prepares for his second inauguration, Sen. John Barrasso, the second-ranking Republican in the Senate and Majority Whip, joins "CBS Morning" to discuss the GOP's ...CBS News - 2d -
US Debt Faces Record as Trump and GOP Plan Tax Cuts
The Congressional Budget Office forecasts that annual deficits will top $21 trillion over the next decade.The New York Times - 5d -
These five Republicans are ready to derail Trump's tax cuts over the SALT cap
President-elect Donald Trump's signature tax cut bill could hinge on a House Republican fight over state and local tax deductions.CNBC - 6d -
Key Republican says he will support Gabbard as Trump DNI pick
Sen. James Lankford (R-Okla.) said in a Sunday interview that he will support President-elect Trump’s pick for director of national intelligence, former Rep. Tulsi Gabbard (Hawaii). In the ...The Hill - Jan. 13 -
NCAA women’s gymnastics season preview: Olympians and other athletes to watch, key meets and more
Missing the Summer Olympics? At risk of injuring yourself attempting a back handspring in your bedroom while counting down the days until the 2028 Los Angeles Games? There’s a solution: women’s ...Yahoo Sports - Jan. 10 -
Senate GOP fears landmines in House could derail Trump's tax agenda
Senate Republicans fear that President-elect Trump’s tax agenda could be derailed in the House by several potential landmines, including calls by some GOP lawmakers to raise corporate taxes and to ...The Hill - Jan. 10 -
Tax Cuts or the Border? Republicans Wrestle Over Trump’s Priorities.
President-elect Donald J. Trump has waffled on his preferences for how his party tackles his agenda, adding to the uncertainty for Republicans.The New York Times - Jan. 9 -
Trump’s push for SALT tax reform threatened by hardline GOP budget hawks
The path of least resistance could be $5 trillion in new government debt.MarketWatch - Jan. 8 -
Trump to meet with Senate Republicans on Wednesday
President-elect Trump will be on Capitol Hill on Wednesday at the invitation of Senate Republican leadership, according to three sources familiar with the invitation. GOP leaders haven’t released ...The Hill - Jan. 6
More from Politico
-
House sends first immigration bill to Trump’s desk
Politico - 1h -
No recess till Trump gets his Cabinet, top GOP senators say
Politico - 1h -
Senate Dems block GOP’s first abortion bill
Politico - 2h -
Trump’s budget pick is famous for defying Congress. GOP senators want to confirm him anyway.
It’s looking like "thumbs up" for Russ Vought in the Senate, where Republicans are preparing to confirm him to lead the White House budget office despite his reputation for withholding ...Politico - 3h -
Democrats' immigration debate plays out inside Hispanic Caucus
It was the latest manifestation of an intense debate that has racked Democrats since the 2024 elections, where many blamed immigration and border issues for swinging the presidential and ...Politico - 4h
More in Politics
-
House passes Laken Riley Act, sending the first bill to Trump to sign into law
WASHINGTON — The Republican-led House voted Wednesday to give final passage to the Laken Riley Act, a strict immigration detention measure named for a 22-year-old Georgia nursing school student who ...NBC News - 5m -
Prosecutors will have 'to sit on their hands' after Trump’s sweeping pardon of Jan. 6 defendants
President Donald Trump issued more than 1,500 pardons to people charged in connection to the Jan. 6 attack. NBC News Senior White House Correspondent Kelly O'Donnell, Justice Reporter Ryan Reilly ...NBC News - 32m -
Meta denies platforms are forcing users to follow Trump, Vance
Meta on Wednesday pushed back against claims its platforms were automatically forcing users to follow the Instagram accounts of President Trump and Vice President Vance following Inauguration Day. ...The Hill - 34m -
Attaching conditions to wildfire aid ‘is a dangerous precedent’: California Congressman
Rep. Ami Bera (D-Calif.) joins Meet the Press NOW with his reaction to Speaker Mike Johnson's (R-La.) call to condition disaster aid to California.NBC News - 35m -
Biden’s outgoing letter to Trump: ‘May God bless you’
In the letter former President Biden wrote to President Trump, he wished him well during his second term and said, “may God bless you.” “As I take leave of his sacred office I wish you and your ...The Hill - 41m