A U.S. District Court has dismissed four states’ constitutional challenge to the state and local tax (SALT) cap enacted as part of the Tax Cuts and Jobs Act. The court found that the states had failed to plausibly allege that the SALT cap impaired their ability to pursue their own preferred tax policies. Therefore, the court had no basis for concluding that the SALT cap was unconstitutionally coercive. The court rejected the states’ arguments that, among other things, the SALT cap represented an unlawful effort by Congress to wield its regulatory authority in a way that coerced specifically targeted states to change their tax policies. (State of New York, DC NY, 9/30/19) Contact us www.mjscpa.com/news/