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The Supreme Court on Monday rejected an appeal from several states, challenging Congress’ ceiling on state and local taxes that can be deducted from federal taxable income.
New York is leading a group that includes Connecticut, New Jersey and Maryland in a bid to remove the 2017 limit, known as the SALT ceiling, which limits people to $ 10,000 from their state and local taxes on property and income, which can be deduct. The United States claims that the ceiling has wrongfully affected the fiscal capacity of states.
supremecourt.gov (supremecourt.gov)
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“The Congressional Tax Authority (as referred to in Section I, Section 8, and the Sixteenth Amendment) is combined with the structural requirements of federalism, which do not allow the federal government to interfere directly in the ability of states to generate revenue to maintain their activities. The states said in a court case in March. “The long history of federal income taxation shows that Congress and the states alike understand that deducting all or almost all state and local property and income taxes is constitutionally required to maintain state sovereign tax power.”
The Supreme Court did not provide any explanation for the refusal to hear the case.
The SALT restriction was passed by Congress during the administration of former President Donald Trump, and the Biden administration continued to defend it as the case continued.
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The current Democrat-controlled House passed a bill in 2021 that will temporarily raise the ceiling to $ 80,000 by 2031, when it will return to $ 10,000. The Senate has not yet taken action on the bill, although a separate plan in the Senate led by Sen. Bernie Sanders, I-Vt., will limit income tax relief by making it unlimited for people earning about $ 400,000 and phasing it out above that amount. Republicans have criticized the bill, saying it would be disproportionately beneficial to the super-rich Americans in the blue states.
The current SALT limit is set to expire after 2025.
Shannon Brim and Bill Myers of Fox News and Megan Henny of Fox Business contributed to this report.
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