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Four States File Lawsuit Against Trump Administration Over Tax Deduction Changes
Route Fifty: Four states filed a lawsuit against the U.S. Treasury Department and IRS Tuesday, arguing the new $10,000 cap on the federal tax deduction for state and local taxes interferes with their abilities to make policy choices about what government provides in their communities.
The change to the so-called "SALT" deduction was one of the most contentious provisions in last year's Republican tax cut bill. It essentially raises taxes on many residents of states with high state and local taxes, as taxpayers previously were allowed to deduct all or much of those taxes as they did their federal taxes.
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