A federal appeals court upheld the legality of the “SALT cap” that limits the federal deduction for state and local taxes to $10,000. The lawsuit was brought against the U.S. Treasury Dept. by the states of NY, NJ, CT and MD. The court rejected the states’ argument that the constitution mandated an unlimited SALT deduction because there’s nothing in the constitution explicitly requiring the deduction or barring congress from limiting it. Another argument failed that claimed the SALT cap coerced states to abandon their preferred fiscal policies in favor of lower taxes and reduced spending, infringing on their state sovereignty. (State of NY v. Yellen, CA 2) Call or visit our website for more information! www.mjscpa.com/
