SCOTUS swats away SALT cap challenge that limits tax deductions in New York, Maryland

  

Category:  News & Politics

Via:  xxjefferson51  •  one month ago  •  8 comments

By:   Ronn Blitzer

SCOTUS swats away SALT cap challenge that limits tax deductions in New York, Maryland
The Supreme Court Monday rejected an appeal from several states challenging Congress's cap on state and local taxes that can be deducted from federal taxable income.

This is great news!  Now states citizens with lower tax rates and possibly fewer services don’t have to subsidize the tax payers of high tax states and the “benefits” they get from them. The cap is fair because the caps for state and local taxes and for mortgage deduction are the same for all Americans.  Let’s celebrate! jrSmiley_24_smiley_image.gif 👍🥳🎉🎊


S E E D E D   C O N T E N T



SCOTUS swats away SALT cap challenge that limits tax deductions in New York, Maryland


Four states had challenged the 2017 limit on deductions of state and local taxes



Ronn Blitzer April 18, 2022 11:23am EDT


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The Supreme Court Monday rejected an appeal from several states challenging Congress's cap on state and local taxes that can be deducted from federal taxable income.

New York led a group including Connecticut, New Jersey, and Maryland in trying to strike down the 2017 limit known as the SALT cap, which limits people to $10,000 of their state and local property and income taxes that can be deducted. The states argued that the cap improperly encroached on states' taxing ability.

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supremecourt.gov (supremecourt.gov)


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"Congress’s taxing authority (as set forth in Article I, Section 8 and the Sixteenth Amendment) is cabined by the structural requirements of federalism, which prevent the federal government from directly interfering with the States’ ability to generate revenue to sustain their operations," the states said in a March court filing. "The long history of federal income taxation demonstrates that Congress and the States equally understood that a deduction for all or nearly all state and local property and income taxes was constitutionally required to preserve state sovereign taxing authority."

The Supreme Court did not provide any explanation for declining to hear the case.

The SALT cap was passed by Congress during former President Donald Trump's administration, and the Biden administration continued to defend it as this case went on. 

The current Democrat-controlled House passed a bill in 2021 that would temporarily raise the cap to $80,000 until 2031, when it would go back to $10,000. The Senate has yet to take action on the bill, although a separate plan in the Senate led by Sen. Bernie Sanders, I-Vt., would cap the tax break by income, making it unlimited for individuals earning about $400,000 and phasing it down above that amount,. Republicans have criticized the bill, saying it would disproportionately benefit ultra-wealthy Americans in blue states.

The current SALT cap is set to expire after 2025.

Fox News' Shannon Bream and Bill Mears, and Fox Business's Megan Henney contributed to this report.


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XXJefferson51
Senior Guide
1  seeder  XXJefferson51    one month ago
The Supreme Court did not provide any explanation for declining to hear the case. The SALT cap was passed by Congress during former President Donald Trump's administration, and the Biden administration continued to defend it as this case went on. 
 
 
 
XXJefferson51
Senior Guide
1.1  seeder  XXJefferson51  replied to  XXJefferson51 @1    one month ago

A big win for red states and a big loss for the bi coastal secular progressive urban wealthy….

 
 
 
JBB
Professor Principal
2  JBB    one month ago

Only Congress levies taxes. And, boy howdy can they!

 
 
 
XXJefferson51
Senior Guide
2.1  seeder  XXJefferson51  replied to  JBB @2    one month ago

Yes they can do that. They levy way too many taxes  now. It’s time to cut federal tax rates for everyone.  

 
 
 
Snuffy
Senior Guide
3  Snuffy    one month ago

I would like to see the next Congress work to make this permanent.  To do so would require the Republicans take the House and take veto-proof control of the Senate.

 
 
 
Ronin2
Professor Quiet
3.1  Ronin2  replied to  Snuffy @3    one month ago

I agree; can't tax the rich if they can get out of paying federal taxes whenever the states decided to raise their tax levels.

 
 
 
XXJefferson51
Senior Guide
3.1.1  seeder  XXJefferson51  replied to  Ronin2 @3.1    one month ago

It is ridiculous that tax payers in Florida, Idaho, Arkansas, etc.  have to send their federal tax dollars to the four states in question to subsidize the rich in those states who get some sort of “services” for the high tax rates that people their pay.  If the people of New York want to spend the most per capita on their public schools (local tax), the people of Arkansas who don't have, those people should not have to subsidize the decisions of a local or state government elsewhere. The same cap nationwide is fair.  The people in coastal cities in California hate the caps. They have no impact in the valley and mountain foothills on most people there

 
 
 
XXJefferson51
Senior Guide
3.2  seeder  XXJefferson51  replied to  Snuffy @3    one month ago

I agree. This does need to be made permanent.  We will have to wait for De Santis or Trump to become President since we can’t get to 67 senators this year. 

 
 

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