On Monday’s broadcast of the Fox Business Network’s “The Bottom Line,” Sen. Ashley Moody (R-FL) stated that the fact that blue states are “demanding more and more and more federal funding” due to policies that incentivize illegal immigrants to come to their states but want “want more and more and more tax breaks” will factor into discussions over the SALT deduction in the tax bill.
Co-host David Asman asked, [relevant exchange begins around 9:00] “I live in New York state, and we have this SALT — we used to have a SALT deduction that was almost limitless. It was cut back in 2017. There are a lot of Republican congresspeople and senators in blue states who say it has to be lifted. How do you organize some kind of compromise on the SALT tax deduction?”
Moody answered, “I know that that’s something that’s being talked about right now. I know that’s very important to some states. In some of these blue states — and I think that’s what you’re seeing in these executive orders that are coming out from President Trump today — they’re saying look, blue states, you can no longer be reckless, you can’t say you’re going to have these policies that invite overwhelmingly illegal immigrants to surge into our states and rack up the costs on our taxpayers and then expect the [cavalry] to come in from the federal government and save you with funding. He’s trying to balance that. And so, I think the same kind of discussions are going to be had here in Congress in trying to approach that subject sensitively, knowing that many of these blue states are demanding more and more and more federal funding because of policies, and yet, they want more and more and more tax breaks. But I know that’s important to a lot of congresspeople, and I know that’s going to be top of the list for these discussions.”
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