Suing on the basis that full state and local taxes have been fully deductable since the very beginning of the federal income tax more than 100 years ago.
What one Congress giveth another can taketh away.
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Suing on the basis that full state and local taxes have been fully deductable since the very beginning of the federal income tax more than 100 years ago.
The tax code has changed so many times, in many ways, since the income tax was established. Just because these state and local taxes were always fully deductible, doesn’t mean that the law can’t be changed.
At one time, credit card interest was fully deductible. Then it was phased out.
I’m sure there have been other changes to the tax code others could cite, which resulted in “winners and losers” so to speak.
The point being, how in the heck, can there be a federal lawsuit over the legality of Congress changing the tax law? How in the heck, can Cuomo and company, claim that somehow this is a violation of constitutional rights? That’s what this involves in federal court; that somehow rights are violated by the change in the tax law.
Can they really claim this is a bill of attainder somehow? That would be a stretch, because this law has not singled out New York state or any other place. It places a cap on how much in state and local taxes can be deducted, affecting everyone nationwide, regardless of what state they live in. This new law applies to us all equally, so good luck with some argument about equal protection under the 14th amendment.
“Suing on the basis that full state and local taxes have been fully deductible since the very beginning of the federal income tax more than 100 years ago.”
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Sorry, NOT always fully deductible. The AMT regularly has limited the deductibility of SALT payments. Using TurboTax software I computed my taxes NOT prepaying 2018’s property taxes and then ran the software again deducting prepayment of 2018 taxes. My federal tax remained the same (despite having substantially higher SALT) since the AMT amount of taxes is computed without deducting SALT.
This lawsuit is merely a political stunt and will not succeed. MAGA!
Taxes are never a good thing. I guess these states get to pay them now.
But no deduct for cable tax, phone tax, etc.