A key House Republican who is pushing for a higher cap for state and local tax deductions sought to revive the idea of raising the top rate for high earners to help pay for President Donald Trump’s tax cuts — and to get the stalled legislation moving.
“The One Big Beautiful Bill has stalled — and it needs wind in its sails,” New York Representative Nick LaLota posted Saturday on X. “Allowing the top tax rate to expire —returning from 37% to 39.6% for individuals earning over $609,350 and married couples earning over $731,200 — breathes $300 billion of new life into the effort.”
LaLota and other New York Republicans have vowed to block Trump’s signature legislation unless it includes a much more generous cap for the SALT deduction. At the same time, conservatives have vowed to block the bill if it doesn’t have steeper spending cuts, both sides reflecting fears that the party’s signature tax and spending package will worsen the budget deficit.
Some conservatives have also said they are open to a millionaires tax to reduce the deficit.
LaLota suggested the revenue raised from higher taxes on the wealthy could fix the SALT issue and safeguard programs like Medicaid and food stamps “without raising taxes on the middle class.”
LaLota’s pitch comes after conservatives tanked an effort to advance the multi-trillion-dollar tax and spending package in the House Budget Committee on Friday, complaining the bill would lead to soaring deficits. The committee is scheduled to return for another vote Sunday at 10 p.m., with negotiators working all weekend to try and craft a deal.
Many other Republicans, including Speaker Mike Johnson, have opposed letting the top tax rate rise, which goes against decades of party orthodoxy. Trump himself floated raising the top rate for millionaires, then retreated somewhat, advising Congress against it but saying he “would be OK” if they did.
Representative Andy Harris of Maryland, chair of the conservative Freedom Caucus, also previously floated the idea.
The top rate was set at 39.6% under Democratic presidents Bill Clinton and Barack Obama, but Trump’s 2017 law cut it to 37%.