White House avoids stance on SALT cap but notes it could add 'significantly' to costs
Press secretary was asked whether repealing the cap was good or bad policy
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White House press secretary Jen Psaki on Thursday said repealing the $10,000 SALT cap was part of ongoing negotiations on President Biden’s $2 trillion spending bill but declined to say whether the White House supports the policy.
When asked whether the White House thought eliminating the cap, implemented as part of 2017's Tax Cuts and Jobs Act, was good or bad policy, Psaki noted that Biden did not include it in his initial proposal and that it was not a revenue-raising measure.
"The President didn't put it in his proposal, but I will say that we understand there are a number of numbers, about the elimination of the SALT cap, and we are happy to hear from them," Psaki said. "As you also know, just with our little calculators out, it is not a revenue raiser and so it would add costs, and potentially significantly, to a package, there'd have to be a discussion about how that would be paid for what would be taken out instead. And then there's sort of a discussion of what's most important to achieving our overarching objectives."
Psaki said, however, that discussions about the package are ongoing. She has repeatedly indicated that the president is open to suggestions from Congress.
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Repealing the SALT cap is a priority among some lawmakers from high-tax states, which bore the brunt of the consequences from the Trump-era tax measure.
New York Democrat Rep. Tom Suozzi has even indicated that he will not support tax increases, which have been proposed by the president unless the cap is repealed.
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On Thursday, lawmakers announced the formation of a bipartisan SALT Caucus that intends to advocate for relief led by Suozzi and Rep. Josh Gottheimer, D-N.J. The group also includes Republican Reps. Young Kim from California and Lee Zeldin of New York.
Republicans have characterized the effort to repeal the cap as a tax cut for the wealthy. An analysis conducted by the Tax Foundation estimates its repeal would cost $600 billion in revenue over the course of a decade, with the largest relief aimed at the top 1% of earners.
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To pay for his $2 trillion spending initiative, which includes a revamp of the nation’s infrastructure, Biden has proposed raising the corporate tax rate to 28% from 21% and imposing a minimum tax on corporations’ foreign income, as well as closing several perceived loopholes. Collectively, these measures are expected to raise $2 trillion over the course of 15 years, according to the White House.
FOX Business' Blake Burman contributed to this report.