The Supreme Court on Monday rejected several state appeals that challenged the congressional ceiling on state and local taxes that can be deducted from federal taxable income. New York has led a team including Connecticut, New Jersey and Maryland to work to eliminate the 2017 limit known as the SALT cap, which limits people to $ 10,000 of deductible state and local property and income taxes. The states argued that the ceiling inappropriately violated the fiscal capacity of states. supremecourt.gov (supremecourt.gov) ADVISER OBAMA EXCEEDS TAX REDUCTION PLAN FOR BLUE STATE MILLIONS: “THIS IS INFINITE” “Congressional tax authority (as defined in Article I, Section 8 and the Sixteenth Amendment) is covered by the structural requirements of federalism, which prevent the federal government from directly interfering with the ability of States to generate revenue to sustain their operations. . ” states reported in court March. “The long history of federal income taxation shows that Congress and the United States equally understood that deductions for all or almost all state and local property and income taxes were constitutionally required to maintain the state tax authority.” The Supreme Court gave no explanation for the refusal to hear the case. The SALT ceiling was passed by Congress during the administration of former President Donald Trump, and the Biden administration continued to defend it as the case progressed. CLICK HERE TO RECEIVE THE FOX NEWS APPLICATION Today’s Democrat-controlled House passed a bill in 2021 that would temporarily raise the ceiling to $ 80,000 by 2031, when it would return to $ 10,000. The Senate has not yet taken action on the bill, although a separate bill in the Senate under Senator Bernie Sanders, I-Vt., Would reduce income tax relief, making it unlimited for people earning about $ 400,000 abolish gradually. above this amount ,. Republicans criticized the bill, saying it would disproportionately benefit extremely wealthy Americans in the blue states. The current SALT limit is set to expire after 2025. Fox News’ Shannon Bream and Bill Mears and Fox Business’s Megan Henney contributed to this report.
