2nd Circ. Rejects States' Challenge To Fed. SALT Cap

By James Nani (October 5, 2021, 11:55 AM EDT) -- The federal $10,000 deduction cap on state and local taxes is constitutional, the Second Circuit said Tuesday, finding a challenge to the limitation by Maryland, New York, New Jersey and Connecticut lacks merit.

A Second Circuit panel found that Congress did not exceed its 16th Amendment taxing powers by limiting deductions under the Tax Cuts and Jobs Act. (AP Photo/Mary Altaffer) The Second Circuit panel affirmed a district court decision that the state and local tax deduction cap isn't coercive in violation of the U.S. Constitution's 10th Amendment or the principle of equal sovereignty, according to the opinion. The panel also rejected...

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