SALT Tax-Cap Challenge by New York and New Jersey Is Thrown Out (2)

Four states in the eastern U.S. lost a legal challenge to a provision of the 2017 law that limited write-offs for state and local taxes, as a federal judge threw out a lawsuit seeking to block the cap.

The 2017 tax law capped the amount of state and local tax, or SALT, deductions, which had been unlimited, to $10,000. Democrats in Congress and some state lawmakers said the change targeted Democratic-led states that tend to have higher taxes. New York Governor Andrew Cuomo called it “economic civil war.”

U.S. District Judge J. Paul Oetken Sept. 30 threw out a lawsuit ...