'Irony': WSJ editorial blasts GOP 'extortion' that did Democratic states a 'favor'

The conservative Wall Street Journal scorched House Republicans on Wednesday for their ongoing battle over raising the cap on the state and local tax deduction (SALT), which lets mostly wealthier households offset the cost of what they've paid in certain high-tax states.

Broadly, a number of swing-district Republicans in Democratic-controlled states, particularly New York, are demanding the SALT cap be much higher than GOP leadership's initial offer of increasing it from $10,000 to $30,000. The process is starting to frustrate even President Donald Trump, who told one of the most outspoken SALT rebels, Rep. Mike Lawler (R-NY), to just "drop it."

But the editorial board, which has already panned the GOP's SALT battle in earlier analyses, has a key objection: it will let Democrats raise state taxes even higher.

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"Few voters in other states will benefit because the standard deduction (which the House bill increases to $32,600 for couples) is bigger than their itemized deductions. Texans pay no income tax and on average $3,872 in property tax. Why should they subsidize Democratic spendthrifts in Albany?" wrote the board. "Don’t be surprised if Democrats who run high-tax states take advantage of Republican generosity by raising taxes even more. It will also relieve political pressure on Democrats to reduce taxes to prevent high earners from fleeing. Don’t expect Gov. Kathy Hochul to send her thanks to Messrs. LaLota and Lawler."

What makes the whole situation more ironic, the board noted, is that "Republicans are doing a favor for high-tax states that Chuck Schumer and Nancy Pelosi refused when Democrats controlled Congress in 2021 and 2022. Recall how Democratic Reps. Josh Gottheimer, Tom Suozzi, and Mikie Sherrill insisted they wouldn’t vote for a spending bill without more SALT." Schumer ultimately called their bluff, passed the Inflation Reduction Act without changing SALT, and got their votes anyway.

And to cap it all off, the board noted, Schumer is deliberately provoking the divide now by attacking Republicans over insufficient SALT relief, when he himself did not deliver that as Senate leader.

"This underscores the folly of the Republican SALT caucus. Democrats will denounce them and the tax bill they rode in on in any case," the board concluded. "Senate Republicans can cut this SALT extortion down to size in their bill, and the country should hope they do."