These Republicans are prepared to obstruct Trump's tax cuts due to the SALT cap.

• A group of five House Republicans could potentially block President-elect Trump's signature tax bill if they receive concessions on the current cap on state and local tax deductions.
• CNBC reported that GOP Rep. Nick LaLota, N.Y., deemed the proposal to double the SALT cap to $20,000 as "laughable."
• The SALT cap debate divides Republicans due to the high cost of lifting the limit and the fact that it would mainly benefit high-income households.

A group of five House Republicans from high-tax states is threatening to block a key tax bill supported by President-elect Trump unless they receive a substantial increase in the federal tax deductions for their constituents, who have already paid state and local taxes.

The firm line being drawn during negotiations over a major tax cuts bill is that merely doubling the current $10,000 cap to $20,000 is not sufficient.

"Republican Rep. Nick LaLota, N.Y. told CNBC that the $20,000 is not enough and is almost laughable, as it is too low to earn their vote."

One of 16 members of a congressional state and local tax (SALT) caucus, LaLota, attended a recent meeting with Trump at his Florida resort, Mar-a-Lago. During the meeting, Trump pledged to support their efforts to raise the SALT cap and instructed them to provide a number that would guarantee their backing for his broader tax package.

The group intends to utilize the slender, four-seat advantage of House Republicans to boost their own power.

A group of five Republican House members, including LaLota, have vowed to unite and block any broader Trump tax cut bill unless it includes substantial modifications to the current SALT cap restrictions.

His fellow New York Reps, including Mike Lawler, Andrew Garbarino, and Tom Kean Jr. of New Jersey, as well as Young Kim of California, round out the group.

The SALT Republicans, a five-vote bloc, have the power to sink the tax cut bill that is expected to be Trump's top legislative priority.

Johnson's spokesperson did not respond to the SALT bloc's demand for comment.

Although the larger SALT caucus has secured Trump's support for a SALT cap hike, they must still convince hundreds of their fellow Republicans who are against lifting the cap.

The main argument against increasing the SALT cap beyond $10,000 is that the benefits would primarily benefit wealthier Americans. Additionally, raising the current limit could result in billions of dollars being added to the cost of any tax bill, depending on how it is implemented.

According to the Institute on Taxation and Economic Policy, households in the top 20% would receive a larger share of any increase in the maximum deductions for state and local taxes, as they tend to have higher state tax bills and owe more in federal income taxes.

While Garbarino acknowledged that his constituents' incomes are higher than the national average, he pointed out that, given the high cost of living in their area, these households are considered middle-class.

"In an interview with CNBC, he stated that his district is not very wealthy and is primarily composed of blue-collar workers, including cops, firefighters, teachers, and union members. These individuals were injured in 2017 when a certain policy was implemented, and they are now seeking to rectify the situation."

The SALT Caucus has not yet determined a specific cap amount and is currently analyzing data to create a proposal that benefits the middle class.

LaLota stated that he has two preferred options: Congress could increase the cap to an undetermined amount, and then allow joint filers to deduct twice that amount.

Instead of removing the cap entirely, Congress could restrict the deduction to households with income below a certain level.