SCOTUS SALT Cap removes challenge that limits tax deductions in New York, Maryland TOU

SCOTUS SALT Cap removes challenge that limits tax deductions in New York, Maryland

 TOU

SCOTUS SALT Cap removes challenge that limits tax deductions in New York, Maryland

NewYou can now listen to TOU articles!

The Supreme Court on Monday rejected an appeal by several states challenging congressional limits on state and local taxes that could be deducted from federal taxable income.

New York led groups including Connecticut, New Jersey and Maryland in an effort to strike the 2017 limit, known as the SALT cap, which limits people to $ 10,000 from their state and local property and income taxes that can be deducted. The states argued that the cap unduly encroached on the tax capacity of the states.

supremecourt.gov
(supremecourt.gov)

Obama’s adviser rips off tax cuts for Blue State millionaires: ‘It’s obscene’

“The taxing authority of Congress (as outlined in Article I, Article 8 and Sixteenth Amendment) is bound by the structural requirements of federalism, which prevents the federal government from directly interfering in the state’s ability to generate revenue to sustain its operations,” the states said in a March court filing. “The long history of federal income taxation shows that Congress and states alike understand that deductions for all or almost all state and local property and income taxes are constitutionally necessary to maintain the state’s sovereign taxing authority.”

The Supreme Court has not given any explanation for refusing to hear the case.

The SALT cap was passed by Congress during the administration of former President Donald Trump, and the Biden administration continued to defend it as the case unfolded.

Click here to get the TOU app

The current Democrat-controlled House passed a bill in 2021 that would temporarily raise the limit to $ 80,000 by 2031, while moving it to $ 10,000. The Senate has yet to act on the bill, although Sen. A separate plan in the Senate, led by Bernie Sanders, I-Vt., Will limit the tax break by income, making it unlimited for individuals earning about $ 400,000 and phasing it out. That amount, above. Republicans have criticized the bill, saying it would disproportionately benefit the richest Americans in the blue states.

The current SALT cap is set to expire after 2025.

Shannon Bream and Bill Meyers of TOU and Megan Haney of Fox Business contributed to the report.

if you want to read this article from the original credit source of the article then you can read from here.

Leave a Reply