Geee Posted April 18, 2022 Share Posted April 18, 2022 Fox News Four states had challenged the 2017 limit on deductions of state and local taxes The Supreme Court Monday rejected an appeal from several states challenging Congress's cap on state and local taxes that can be deducted from federal taxable income. New York led a group including Connecticut, New Jersey, and Maryland in trying to strike down the 2017 limit known as the SALT cap, which limits people to $10,000 of their state and local property and income taxes that can be deducted. The states argued that the cap improperly encroached on states' taxing ability. "Congress’s taxing authority (as set forth in Article I, Section 8 and the Sixteenth Amendment) is cabined by the structural requirements of federalism, which prevent the federal government from directly interfering with the States’ ability to generate revenue to sustain their operations," the states said in a March court filing. "The long history of federal income taxation demonstrates that Congress and the States equally understood that a deduction for all or nearly all state and local property and income taxes was constitutionally required to preserve state sovereign taxing authority." The Supreme Court did not provide any explanation for declining to hear the case. The SALT cap was passed by Congress during former President Donald Trump's administration, and the Biden administration continued to defend it as this case went on. :snip: Link to comment Share on other sites More sharing options...
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