U.S. Supreme Court snubs challenge to state and local tax cap
2022.04.18 17:00
FILE PHOTO: A pedestrian walks by the U.S. Supreme Court building in Washington, U.S. March 15, 2022. REUTERS/Emily Elconin/File Photo
By Andrew Chung
(Reuters) – The U.S. Supreme Court on Monday rejected a bid by four Democratic-leaning states to lift a cap on federal deductions for state and local taxes put in place as part of a 2017 tax overhaul under Republican former President Donald Trump.
The justices turned away an appeal by New York, Connecticut, Maryland and New Jersey after a lower court threw out their lawsuit. The lower court held that the U.S. Congress had broad authority over taxes and did not violate the U.S. Constitution by placing a $10,000 limit on the amount of state and local taxes that individuals may deduct on their federal income tax returns.
Democratic President Joe Biden’s administration opposed the four states.