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Payroll Today

More fun with the Tax Cuts and Jobs Act

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Alice Gilman

by on
in Payroll Today

The Tax Cuts and Jobs Act is an outstanding example of the law of unintended consequences. Here’s the latest.

New York, New Jersey, Connecticut and Maryland get SALTY

We knew it was coming. We just didn’t know how the arguments would be constructed.

On July 17, the attorneys general of New York, New Jersey, Connecticut and Maryland filed a complaint in federal court alleging that the TCJA’s $10,000 cap on state and local tax deductions is unconstitutional.

Crux of the complaint: The $10,000 SALT cap violates the state sovereignty provision of the 10th Amendment, and the 16th Amendment, which ratified the modern federal income tax. The complaint seeks declaratory and injunctive relief invalidating the $10,000 cap.

Do the plaintiffs have a leg to stand on? We won’t know until the federal government files its answer and quite probably, a motion to dismiss. We’re watching this carefully.

Bottle of red. Bottle of ...(register to read more)

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