October 1, 2019

Anna Murray 

In 2017 US President Donald Trump endorsed a federal tax law, which restricted itemized family deduction in people’s state and local tax (commonly known as the SALT) cap up to US$10,000. According to estimation from the Joint Committee on Taxation, the SALT cap and related provisions would raise US$700 billion in revenue in 10 years.

But 4 states, Connecticut, Maryland, New Jersey and New York, argued that the SALT cap was unfair to their residents who were penalized by fewer deductions in filing taxes. They sued the federal government in 2019, protesting the SALT cap unconstitutional and assaulting on their sovereignty. In addition, opponents to the SALT cap claimed it would make it difficult to collect and pay for hospitals, police, schools, and construction and maintenance of road and bridge.

On September 30 US District Court Judge J. Paul Oetken dismissed the lawsuit in Manhattan and wrote in his decision that these 4 states have failed to persuade the court that the SALT cap has exceeded the constitutional power of Congress. But, shortly after New York Governor Andrew Cuomo released a statement that he would consider appealing the ruling.

Photo:Webshot.