New York, New Jersey Pursue Another Battle in SALT Deduction War
- States sue Treasury, IRS over rules stopping SALT workarounds
- High-tax states using lawsuits, legislation cap on deductions
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New York, New Jersey and Connecticut are again suing President Donald Trump’s administration over a provision in the 2017 tax law that limited write-offs for state and local taxes.
The lawsuit filed Wednesday asks a court to stop recent Internal Revenue Service regulations that invalidated state workarounds to help residents maximize the amount of state and local taxes, or SALT, they could deduct. The effort is one of several to reverse one of the most politically contentious changes in Trump’s 2017 tax law, and it’s not clear if it will get any more traction.