October 5, 2021 Second Circuit affirms dismissal of challenge to limitation on federal SALT deduction brought by Connecticut, Maryland, New Jersey and New York In New York, et al. v. Yellen, the Second Circuit has affirmed a district court's dismissal of a complaint filed by Connecticut, Maryland, New Jersey and New York challenging the constitutionality of the $10,000 limitation on the federal income tax deduction for state and local tax (SALT). The states claimed that the SALT deduction is constitutionally mandated or, in the alternative, that the limitation violates the 10th Amendment because it "coerces them to abandon their preferred fiscal policies." The district court found the claim lacked merit and the appeals court agreed. | ||||
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