---
title: "The Trump tax cut plan is at an impasse, with infighting within the Republican Party, and a heated debate over \"state and local tax deductions.\""
type: "News"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/news/241105912.md"
description: "Reports indicate that Trump and House Speaker Mike Johnson hope the State and Local Tax (SALT) bill can be passed before Memorial Day weekend, but Republicans from high-tax states refuse to compromise, insisting on raising the SALT deduction cap, which has stalled the legislation"
datetime: "2025-05-21T00:11:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/241105912.md)
  - [en](https://longbridge.com/en/news/241105912.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/241105912.md)
---

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# The Trump tax cut plan is at an impasse, with infighting within the Republican Party, and a heated debate over "state and local tax deductions."

At a critical moment when Trump is eager to push for significant tax reform legislation, Republican lawmakers from high-tax states refuse to compromise, insisting on raising the state and local tax (SALT) deduction cap, which has stalled the legislation.

On May 20, media reported that Trump went to Capitol Hill on Tuesday to meet with the Republican House caucus, attempting to persuade key blue-state Republican lawmakers to drop their opposition to the tax reform bill, but was unsuccessful. **House Speaker Mike Johnson and Trump hope to pass the bill before Memorial Day weekend, but the firm opposition from five members of the "SALT Core Group" may make this timeline unachievable**.

**The current bill proposes to raise the SALT deduction cap from the current $10,000 to $30,000**, but for some Republican lawmakers, this is still not enough. Media reports indicate that these lawmakers from high-tax states like New York, New Jersey, and California insist that the SALT deduction cap proposed in the current bill does not meet the needs of their constituents.

Media pointed out that after Trump's visit to Congress, **Republican leadership proposed raising the cap to $40,000, but this proposal would only apply to individuals earning $751,600 or less, and this cap would last for four years, after which it would drop to $30,000 for those earning $30,000 or less**. However, the five members of the "SALT Core Group" still indicated they would vote against the current bill.

"My middle-class constituents should not be excluded from this process," said New York Republican lawmaker Nick LaLota after the meeting. Republican hardliner Congressman Andy Biggs from Arizona expressed indifference to calls for a swift push of the bill, stating he is more concerned about the final outcome than the timeline.

## Trump Loses Patience, Expresses Discontent with SALT Demands

According to media reports, during Tuesday's meeting, Trump directly told the "SALT Core Group": "Let it go."

To New York Republican representative Mike Lawler—one of the opponents of the bill—Trump was even more straightforward:

> I know your district better than you do. If you lose the election because of SALT, you are destined to lose.

Trump suggested that Republican lawmakers from New York and other high-tax states wait a bit longer, **trying to further raise the SALT limits after Congress completes tax legislation**. However, this proposal may provoke strong opposition from SALT lawmakers, as they believe the president's "beautiful big bill" is the only opportunity to address this political priority since 2017.

Despite facing numerous challenges, House Speaker Johnson remains optimistic: "We will reach an agreement on everything needed to push this legislation," he stated on Tuesday, and still plans to hold a vote in the House before the end of the week.

## Conservatives Insist on Deeper Cuts to Medicaid

**Another major obstacle facing the tax reform bill comes from conservative Republicans, who are demanding larger cuts to programs like Medicaid and nutrition programs**Maryland Congressman and Chairman of the House Freedom Caucus Andy Harris stated after the meeting that he will continue to oppose the current tax bill:

> We are not doing enough on Medicaid.

Although **the current version of the legislation includes work requirements for able-bodied adults and charges more Medicaid beneficiaries for medical services, these measures still seem insufficient to conservative lawmakers**

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