U.S. appeals court rejects challenge by 4 states to state and local tax cap

[Yo_Mama_Been_Loggin]

Source: Reuters

NEW YORK (Reuters) -A federal appeals court on Tuesday rejected efforts by four Democratic-leaning U.S. states to overturn former Republican President Donald Trump's decision to limit federal deductions on state and local taxes.

In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan said the federal government had authority to impose a $10,000 cap on the state and local taxes that households' itemizing deductions could write off their federal returns.

The decision is a defeat for New York, Connecticut, Maryland and New Jersey, which challenged the so-called SALT cap implemented as part of a $1.5 trillion tax overhaul in 2017.

That law also cut taxes for wealthy Americans and slashed the corporate tax rate. Trump signed it following approval on a party-line vote from the Republican-controlled Congress.

Read more: https://www.msn.com/en-us/news/us/us-appeals-court-rejects-challenge-by-4-states-to-state-and-local-tax-cap/ar-AAPa4L7

[FBaggins]

1. No surprise there

There wasn't much chance of success.

But that won't keep someone from showing up eventually and declaring it the result of Trump's capture of the courts - just because it was a Trump policy that was being opposed by three blue states.

[cstanleytech]

2. Ya, I am not sure how they thought they could win this one as it was changed as part of a federal

tax law and the only way to change it is via a new one to replace and or repeal it.

[Ford_Prefect]

3. We need to overturn the tax rewrite as many before me have said.

[SoCalDavidS]

4. Pretty Much A Waste Of Taxpayer Money By Those States

The only way to fix this problem with the Tax Law is by changing it in Congress. Courts can't do anything.