President-elect Donald Trump is signaling his intent to dismantle New York City's congestion pricing measures and raise the cap on state and local tax (SALT) deductions.
The New York Post reported that Trump recently discussed these proposed changes with Republican members of New York's congressional delegation during a meeting at his Mar-a-Lago estate in Florida.
In a bid to alleviate the financial pressures on New Yorkers, Trump has set his sights on the city's newly implemented congestion pricing system.
The system, which began on January 3rd, imposes a $15 toll for vehicles entering Manhattan below 60th Street. The policy aims to reduce traffic congestion and fund mass transit infrastructure improvements.
Despite the intention behind the toll, Trump has voiced his opposition. As confirmed by Staten Island Representative Nicole Malliotakis, Trump indicated he wants to eliminate the congestion tax. Representative Mike Lawler added that Trump expressed agreement that the program should be abolished.
A federal judge had previously upheld the toll's implementation following multiple legal challenges. However, New York's Republican representatives are hopeful that the Federal Highway Administration under Trump's upcoming administration may overturn the program.
Another major point of discussion was the potential increase of the SALT deduction cap. Established at $10,000 through the 2017 Tax Cuts and Jobs Act, this cap has been a point of contention for many New Yorkers. Lawler confirmed Trump's commitment to elevating the SALT cap, aligning it within a legislative package that might also seek to renew Trump's 2017 tax cuts.
Malliotakis expressed Trump's understanding of what she termed the 'plight' of New Yorkers, noting how the current administration treats them akin to 'ATMs' with tax burdens. Trump's aim, she noted, is to offer SALT relief.
On the other side, Governor Kathy Hochul has shown skepticism regarding the permanence of Trump’s pledge to eliminate congestion pricing.
Citing his New York roots, Hochul suggested that Trump might comprehend the potential positives of the toll. Her stance is to let the program run its course to observe its effects on the city's dynamics.
Despite her skepticism, Hochul welcomes collaboration with those eager to assist New York City. She emphasized the importance of fully repealing the SALT cap, considering partial measures as inadequate.
The Republican members who met with Trump emphasized the need for consensus on a new SALT figure.
Lawler noted the necessity of finalizing an agreeable number within the House as discussions progressed.
As negotiations continue, Trump's stance may find itself at a crossroads with existing state leadership. Hochul's administration may advocate for a much broader consideration of NYC's tax structures instead of abrupt policy changes.
