N.Y. and N.J. Face Skeptical Appeals Court in SALT Tax Fight

New York, New Jersey, Connecticut and Maryland faced skeptical questioning from a panel of federal judges considering whether to revive a lawsuit that challenges a U.S. cap on individual deductions for state and local taxes.

At the behest of the Trump administration, a tax overhaul passed by Congress in 2017 set the maximum deduction for so-called SALT payments at $10,000 on individual returns, imposing the first limit on deductions allowed in full for more than 150 years. Opponents claimed the change illegally targeted Democratic-leaning states that tend to have higher taxes. New York Governor Andrew Cuomo called it “economic civil war.”