Blue state Republicans threaten revolt against Trump's 'big, beautiful bill' if Senate changes key tax rule

Blue authorities House Republicans sounded the alarm Monday pursuing reports that a hard-fought summation to the authorities and section taxation (SALT) deduction headdress would beryllium nixed by Senate GOP taxwriters successful President Donald Trump's mammoth docket bill.

"Consider this the effect to the Senate’s ‘negotiating mark’: DEAD ON ARRIVAL," Rep. Mike Lawler, R-N.Y., posted connected X.

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L-R: Mike Lawler, Donald Trump, John Thune; SALT Caucus Republicans are firing a informing changeable to the Senate arsenic it considers President Trump's fund bill. (Getty/AP)

The Senate Finance Committee, which has jurisdiction implicit taxes, healthcare and a litany of different divisive argumentation areas successful President Donald Trump’s "big, beauteous bill," is expected to merchandise its offering of the mammoth measure aboriginal connected Tuesday.

Senate Republicans person not shown overmuch involvement successful heeding the needs of the cohort of bluish authorities Republicans, fixed that nary subordinate of the Senate GOP represents a bluish state. Of the tweaks and changes coming successful the Senate’s rewrite of the taxation package, SALT is among the apical of the list.

SALT deductions were initially capped astatine $10,000 for joined and azygous filers successful Trump’s 2017 Tax Cuts and Jobs Act (TCJA), and GOP lawmakers successful front-line districts person made it their ngo to rise that headdress successful the existent taxation talks.

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U.S. Speaker of the House Mike Johnson delivers a connection connected the Israeli depository shooting that near 2 Israeli Embassy staffers dormant aft holding a property league connected the House transition of the taxation and spending measure astatine the U.S. Capitol connected May 22, 2025, successful Washington. (Kevin Dietsch/Getty Images)

Conservatives wanted it to stay successful spot to assistance wage for the president’s first-term tax cuts, but the contented has since go a rallying outcry for House Republicans successful New York and California, demanding alleviation for their constituents successful areas with precocious authorities and section taxes, specified arsenic large cities and their surrounding suburbs.

They accidental that the existent headdress successful the House GOP’s measure is non-negotiable, and it lone takes 3 "no" votes successful the House to termination immoderate measure — Rep. Thomas Massie, R-Ky., is already a hard "no" against the broader bill.

But the Senate Finance Committee is inactive moving retired the kinks of its bill, and the lowered SALT headdress is not acceptable successful stone.

A root acquainted with the ongoing negotiations told Fox News Digital that the $10,000 headdress was conscionable a placeholder arsenic talks proceed up of the merchandise of the afloat bill. The root added that "folks getting outraged are jumping the weapon and cognize it’s inactive successful negotiation."

Rep. Nicole Malliotakis, R-N.Y., who represents portion of New York City and is simply a subordinate of the House’s taxwriting panel, the Ways and Means Committee, objected to the Senate’s imaginable placeholder reversal.

"The $40,000 SALT deduction was cautiously negotiated on with different taxation provisions by the House of Representatives, and we each had to springiness a small to get the votes to walk the Big Beautiful Bill. For the Senate to permission the SALT deduction capped astatine $10,000 is not lone insulting but a slap successful the look to the Republican districts that delivered our bulk and trifecta," Malliotakis told Fox News Digital.

"If we privation to beryllium the large structure party, we request to admit that we person members representing bluish states with precocious taxes that are subsidizing galore reddish districts crossed the state with constituents who payment from refundable taxation credits contempt paying zero successful taxes."

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Left: President Donald Trump; Right: Rep. Andrew Garbarino, R-N.Y. (Left:Tasos Katopodis/Getty Images; Right: Tom Williams/CQ-Roll Call, Inc via Getty Images)

Increasing the SALT headdress was a large enactment successful the soil for House Republicans from New York, New Jersey and California, who vowed to ballot against the bundle unless the deduction was accrued and warned that if a solution wasn’t found, the GOP could suffer the House.

Last-minute negotiations starring up to the House ballot past period raised the headdress to $40,000 for some azygous and joined filers making up to $500,000 per year.

The deduction would driblet for radical making implicit the $500,000-mark to a minimum deduction of $10,000. Both the headdress and income ceiling would summation annually by 1% from 2026 to 2033.

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Indeed, their enactment helped to squeak the monolithic measure done the House, which precocious by a one-vote margin. Now Senate Republicans are sprinting to decorativeness their molding of the measure successful an effort to get the full bundle backmost done the little enclosure and onto Trump’s table by July 4.

SALT Caucus co-chairs Reps. Young Kim, R-Calif., and Andrew Garbarino, R-N.Y., told Fox News Digital that the headdress negotiated "in bully religion with the talker and the White House indispensable stay successful the last bill."

"It not lone upholds President Trump’s committedness to rise the SALT cap, but has been praised by middle-class families, firefighters, instrumentality enforcement, tiny concern owners, and hardworking Americans crossed the country," they said successful a associated statement. "Instead of undermining the woody already successful spot and putting the full measure astatine risk, the Senate should enactment with america to support our committedness of historical taxation alleviation and present connected our Republican agenda."