• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis

Trump Says He’s `Open’ to Changing SALT Cap in Tax Law

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
February 7, 2019, 2:01 PM ET
US-POLITICS-TRUMP-religion
President Trump is willing to discuss revising to the so-called SALT cap. BRENDAN SMIALOWSKI AFP/Getty ImagesBrendan Smialowski—AFP/Getty Images

President Donald Trump said he would consider changes to a controversial cap on the federal deduction for state and local taxes, one of the most divisive provisions of the 2017 Republican tax overhaul.

Trump told regional newspaper reporters in response to a question Wednesday that he’s “open to talking about” revisions to the so-called SALT cap, which limits to $10,000 the amount of state and local levies, including property taxes, that taxpayers can deduct each year on their federal returns.

“There are some people from New York who have been speaking to me about doing something about that, about changing things. It’s been severe on them,” he said.

The remarks were reported earlier in The Stamford Advocate.

While Trump offered no specifics on the complaints or what he might do, even his hint held the potential for enormous interest in New York, Connecticut, New Jersey, and other high-tax states. The SALT cap has hit taxpayers there particularly hard, because of higher state levies, property values, and real estate taxes.

The cap is a key revenue raiser in the $1.5 trillion tax-code overhauls, which slashed rates for business and individuals. Lifting the cap would cost around $673 billion over a decade, according to the conservative Tax Foundation, a sum that might require raising the newly lowered 21 percent corporate rate to absorb the cost.

“I would anticipate a lot of pushback on that idea from conservatives on and off the Hill,” Ryan Ellis, a conservative tax lobbyist, said Thursday.

States with high local taxes are largely Democratic, and state officials have complained that the cap was designed to punish Democratic voters.

In three of the states most affected — California, New Jersey, and New York — Republicans lost 14 U.S. House seats in the 2018 midterms, accounting for about a third of the party’s overall losses. Additionally, two key lawmakers in crafting the Republican tax overhaul — former Representatives Erik Paulsen of Minnesota and Peter Roskam of Illinois — lost their seats where the unpopularity of the new law was a major issue in their campaigns.

Senator Bob Menendez, a New Jersey Democrat, vowed Feb. 5 to block the nomination of Michael Desmond to become chief counsel at the Internal Revenue Service over the cap. New York Governor Andrew Cuomo said recently that the SALT cap and other tax changes had prompted a $2.3 billion shortfall in state revenue last December; he blamed the cap for causing taxpayers to flee to states like Florida, which has no state income tax.

In Connecticut, the cap will cause taxpayers to pay an additional $2.8 billion in taxes for the 2018 tax year, according to state figures released last July.

Those three states, along with Maryland, sued the Treasury Department, IRS, and the Trump administration in Manhattan federal court last July, challenging the cap as infringing upon their state authority among other claims.

In New York’s Westchester County, the average property tax was $14,654, according to an April 2018 report by the New York State Association of Counties.

Democrats in Congress, including House Ways and Means Chairman Richard Neal of Massachusetts, have already vowed to tackle the SALT cap. “We are going to revisit the SALT deduction, I can tell you that,” he told a business forum on Nov. 27.

Still, it’s not clear that any changes would be enacted into law, given that many Republicans support the cap, as do many Democrats outside of the high-tax Northeast and California.

States have offered workarounds to the cap, but the IRS has blocked most of them, including one involving charitable donations in exchange for credits on property tax payments. The IRS hasn’t weighed in on a plan by Connecticut to offer owners of partnerships and other so-called pass-throughs a state credit equal to 93 percent of an owner’s paid state tax.

The workaround allows taxpayers to convert a state business into a federal deduction.

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

epstein on the right, deutsche bank logo, dollar bill butterflies, and christian sewing on the left in a collage
BankingJeffrey Epstein
‘The Butterfly Trust’: How Deutsche Bank maintained Jeffrey Epstein as a client until he was arrested
By Lily Mae LazarusMay 17, 2026
18 minutes ago
‘No one was coming to save me’: How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn’t fix
Successreese witherspoon
‘No one was coming to save me’: How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn’t fix
By Sydney LakeMay 17, 2026
18 minutes ago
Mary Moreland-Abbott Executive Vice President of Human Resources.
CommentaryRetirement
Gen X is the most indebted generation in America. Their employers can fix that
By Mary MorelandMay 17, 2026
48 minutes ago
Gen Z calls degrees ‘useless’—but 20 years of data tells a different story: graduates are still the least likely to be unemployed
Successunemployment
Gen Z calls degrees ‘useless’—but 20 years of data tells a different story: graduates are still the least likely to be unemployed
By Orianna Rosa RoyleMay 17, 2026
1 hour ago
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
EconomySamsung
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
By Catherina GioinoMay 17, 2026
2 hours ago
Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing in Washington, DC, US, on Tuesday, April 21, 2026.
BankingKevin Warsh
Wall Street is keeping a close eye on Kevin Warsh at the Fed. These are the red (and green) flags they’re watching for
By Eleanor PringleMay 17, 2026
3 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
23 hours ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
13 hours ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
1 day ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
23 hours ago
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
Energy
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.