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Scalise says SALT talks already kicking off

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House Majority Leader Steve Scalise said that Republicans were negotiating on Tuesday over how to accommodate concerns about the state and local tax deduction that could be an obstacle to a sweeping tax package next year.

“We need to address this problem,” said Scalise (R-La.) of the contingent of House Republicans from California, New Jersey and New York who have been adamant about lifting the $10,000 cap on the deduction for state income and property taxes, known as SALT in tax parlance. “They’re coming back.”

A spokesperson for Scalise did not immediately respond to a request about which lawmakers were participating in the meetings.

The early negotiations signal just how challenging House Republican leadership expects it to be to muster the votes for an anticipated reconciliation bill next year, which could be passed without Democratic support. Republicans want to use the legislation to extend trillions of dollars in expiring tax cuts that President-elect Donald Trump and his allies in Congress pushed through in 2017, during Trump’s first term.

And the most difficult part for leadership promises to be those pro-SALT Republicans, who held up a tax package earlier this spring over demands that it include some form of relief from the cap. The limit was imposed to offset some of the cost of the 2017 cuts – and ding blue states that have high taxes.

Tuesday morning, Rep. Michael Lawler (R-N.Y.) reaffirmed those demands, telling Blue Light News that he’s made it “abundantly clear” that any future tax packages will need to address SALT.

In remarks made at a panel hosted by the Business Roundtable and the American Petroleum Institute, Scalise said that he reminded incoming Senate Majority Leader John Thune (R-S.D.) that such demands from Republicans in high-tax states could be a significant challenge in the House.

“I reminded him, because he wasn’t part of it last time around in the top leadership, that our challenge in the House is much different,” Scalise said. The Senate GOP “doesn’t have a single SALT state member. There’s five states that are really affected by SALT, and New York and New Jersey were the most vocal,”

“We had over 30 members from those states,” Scalise said of 2017. “By the way we still have close to that today.”

For now, negotiations over taxes are mired in an ongoing strategic debate over whether to do two reconciliation bills, addressing border and energy policies first and taxes later, or enact all of the Republicans’ policy priorities together.

Still, there are plenty of Republicans who detest the idea of raising the SALT cap because they believe it unfairly benefits wealthy taxpayers in high-tax states.

“We’ve got people on both ends, Republicans and Democrats who don’t like it,” said House Ways and Means committee member Kevin Hern (R-Okla.).

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Congress

Texas Republican is under House Ethics investigation

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The House Ethics Committee said in a statement Monday it is investigating Rep. Lance Gooden, a four-term Texas Republican.

It’s unclear what the committee is probing, but the Office of Congressional Conduct, an independent investigative branch of the House, sent over findings regarding Gooden to the committee June 10.

The Ethics panel plans to release an update on its investigation by Nov. 9. Committee representatives declined to comment beyond the statement.

In 2021, the Campaign Legal Center filed a complaint asking for an investigation into Gooden’s apparent failure to report his stock trades in a timely manner, which is a requirement under a federal law known as the STOCK Act. The complaint was sent to the OCC.

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Congressional Black Caucus members break with Jeffries, endorse against Thanedar in Michigan House race

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A handful of members of the Congressional Black Caucus on Monday broke with Democratic Party leadership to endorse Michigan state Rep. Donavan McKinney in his bid to primary Rep. Shri Thanedar, an unusual move given that sitting members of the same party rarely endorse against each other.

Democratic Reps. Steven Horsford (Nev.), the former chair of the CBC, and Lateefah Simon (Calif.) called McKinney a “fighter.” Rep. Ilhan Omar (Mich.) praised McKinney as “the only trusted candidate” in the race. And Rep. Ayanna Pressley (Mass.) touted McKinney for “never [losing] sight of the people.”

“We need Donavan in Congress,” said Pressley.

The race between McKinney and Thanedar, who was elected in 2022, is the latest battleground in the ongoing ideological clash between the Democratic establishment and its progressive flank.

McKinney is hoping to capitalize on the latest wave of progressive successes in primaries, but Thanedar retains the power of the incumbency — and the backing of House Democratic leaders Hakeem Jeffries, Katherine Clark and Pete Aguilar.

Thanedar’s 2022 election marked the first time since 1955 that the majority-Black city of Detroit didn’t have a Black lawmaker representing it in Congress. And he won two years ago only after Adam Hollier, who was viewed as his most credible primary challenger, was disqualified from the ballot.

“It’s not just about having Black representation, but that is a part of what appropriate representation looks for,” Rep. Summer Lee (D-Pa.), who had previously backed McKinney, told Blue Light News. “You have a majority-Black district, and I think that there is certainly an appetite to see that again, or to at least make sure that a Black candidate has the opportunity to present themselves.”

In a phone call, Thanedar emphasized that he has worked closely with members of the CBC during his time in office, noting that the late Rep. Sheila Jackson Lee (D-Texas) was a mentor of his and, in addition to Jeffries, he has the endorsement CBC members like Rep. Bennie Thomspon (D-Miss.).

“I am fully aware that I am representing the Blackest city in America and I’m proud of it,” Thanedar, who is Indian-American, said. “My story is like Detroit’s story — I struggled through poverty, never say die, never gave up and I have that resilience that Detroit has. The resilience of Detroit is what my life is about.”

McKinney on Monday said he was “honored” by the endorsements.

“Millions of lives across the country have been made immeasurably better because of the hard work these members have done in Congress, and I look forward to working alongside these incredible leaders to pass critical legislation to protect voting rights, get big money out of our politics, and ensure all families have access to the resources they need to not just survive, but to truly thrive,” he said in a statement.

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Fetterman says Democrats were ‘horribly wrong’ to try eliminating Senate filibuster

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Sen. John Fetterman (D-Pa.) is backpedaling on his previous calls to eliminate the filibuster in the Senate — which is a critical bulwark against “a fill-in-the-blank government with new laws, deregulation or procedures of its choosing,” he wrote in a Washington Post op-ed published Monday.

“A Senate without the filibuster [would become] a Senate that ignored the voices of the minority and everyday people,” he wrote, elaborating on previous comments. Last month, he told Katie Miller that Democrats were “so wrong” about opposing the filibuster.

“We cannot become a smaller version of the House of Representatives,” he wrote in his op-ed.

In 2022, Fetterman campaigned to abolish the filibuster, a 60-vote rule that effectively requires a supermajority to pass most legislation. His argument on the trail — which remains on his campaign website as of Monday afternoon — was that the rule stood “in the way of getting things done for Pennsylvanians.”

At that time, many Senate Democrats and activists argued the same publicly, as the party attempted to pass a sweeping overhaul of elections that Democrats said would better protect voting rights. But two then-Democratic senators, Joe Manchin (W.Va.) and Kyrsten Sinema (Ariz.) — protested against throwing out the rule, saying it would hurt the party’s priorities in the long run.

Ultimately the filibuster survived and Democrats did not pass their voting rights bill, with much of the party base heaping scorn on Manchin and Sinema.

Now, with Republicans holding a government trifecta, the power dynamic has flipped.

President Donald Trump is now urging Republican senators to kill the filibuster, which has stalled passage of the SAVE America Act. He turned the screws on Majority Leader John Thune on Monday, demanding that Thune keep the Senate in session until the GOP-backed elections bill passes.

“John Thune should not allow the United States Senate to ‘leave town’ until it passes The Save America Act or, far better still, TERMINATES THE FILIBUSTER, where Republicans can then quickly pass everything they ever dreamed of,” Trump wrote in a Truth Social post.

The filibuster has been a block against GOP-championed causes, Fetterman argued: “We could have extreme policies such as nationwide abortion restrictions, backpedaling on LGBT rights, repeal of birthright citizenship and limited voting rights across the country. … Republicans could fundamentally change the entire government and country with a simple majority vote.”

With the midterms approaching, Democrats face a tight battle to win back the Senate. The next time they have a trifecta, the filibuster will — once again — be a thorn in the party’s side, complicating the passage of key priorities.

Democrats “will once again have to find common ground with our Republican colleagues,” Fetterman said. “We will need to abandon our worst impulses as a party and work together to find solutions to the problems Americans face.”

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