The attorneys general of 4 states have asked the U.S. Supreme Court to hear a challenge involving the federal cap on state and local tax (SALT) deductions. The states are NY, NJ, CT and MD. In a petition filed with the court, the states argue the 2nd U.S. Circuit Court of Appeals was incorrect in its Oct. 5, 2021, ruling to reject their claims that the $10,000 cap is coercive and thus violates the Constitution’s 10th Amendment and is in breach of the 16th Amendment. According to the petition, the cap hurts the 4 states by increasing residents’ federal tax liabilities and the cost of homeownership, potentially forcing the states to forgo revenue from property and real estate transfer taxes. Call or visit our website for more information! www.mjscpa.com/
