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Is Capping the Deduction for State and Local Taxes Unconstitutional?  


Author:  Erik M. Jensen.


Source: Volume 35, Number 03, Spring 2018 , pp.27-32(6)




Journal of Taxation of Investments

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Abstract: 

In the Tax Cuts and Jobs Act of 2017, Congress capped the deduction available for state taxes not attributable to businesses or investments, and representatives of high-tax states are challenging the constitutionality of that cap—which, they argue, was motivated by animus. This article considers several possible rationales for a challenge—intergovernmental tax immunity, political animus in general, the uniformity rule, and equal protection—and concludes that the case for overturning the cap on constitutional grounds is weak at best.

Keywords: cap on SALT deduction, animus, intergovernmental tax immunity, Uniformity Clause, equal protection, Tax Cuts and Jobs Act of 2017

Affiliations:  1: Case Western Reserve University School of Law.

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