Representative Mike Lawler, a key negotiator behind the temporary increase to the cap on state and local tax deductions, pushed back on efforts to further expand the tax break through legislation later this year.
The New York Republican suggested the idea was unrealistic, telling Bloomberg reporters and editors on Tuesday "I don't think" any extensions or additional benefit related to the SALT deduction would make into a potential Republican tax measure later this year.
Representative Nick LaLota, a Republican from Long Island, said last month he would seek to extend the higher cap on the SALT deduction beyond the five-year period if Republicans attempt to pass another tax bill before the November midterm elections.
Lawler called the temporary increase to the cap on SALT deductions that he and other GOP lawmakers from high-tax states secured in last year's sweeping tax law a "very good deal." Other policies would take priority in the next partisan budget package, if one materializes, he said.
If the party pursues another partisan budget measure the focus should be on lowering housing, healthcare and energy costs, he said.
Last year's law increased the cap on SALT deductions from $10,000 to $40,000 for five years, thanks to the efforts of Lawler and a handful of Republicans from California, New Jersey and New York, who threatened to withhold support from the GOP package without an increase to the limit. Most Republicans opposed raising the SALT cap, which they saw as a give-away to high tax, Democratic strongholds.
Lawler said he would push for capital gains tax relief for home sales, if the GOP pursues another partisan budget package. Currently, married couples selling their primary residence don't have to pay taxes on the first $500,000 in profit.
GOP enthusiasm for another party-line budget bill is growing, especially in the House, as the party looks to address voter concerns on affordability. But such a package faces an uphill path to passage, given tight margins in both the House and Senate.
Congressional Republicans are currently working to pass their second party-line spending package to fund Immigration and Customs Enforcement, Border Patrol and security for President Donald Trump's controversial planned new White House ballroom.
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