SCOTUS Rejects Blue States' Appeal to Provision of Trump 2017 Local Tax Cap Deduction Law

The U.S. Supreme Court rejected an appeal on Monday from a number of Democrat-run states that sought to challenge a 2017 tax law signed by then-President Donald Trump capping local taxes that can be deducted from federal taxable income.

The group of states led by New York, which includes Connecticut, New Jersey, and Maryland, had attempted to strike down a portion of the tax law known as the “SALT cap,” which limits residents in those states to deduct just $10,000 of their state and local property and income taxes.

The states argued that the cap unconstitutionally encroached on their taxing authority.