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

    10/05/2021 9:50:46 AM PDT · by cotton1706 · 25 replies
    msn.com ^ | 10/5/21 | Jonathan Stempel
    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....