Connecticut, New York and two other states filed an appeal challenging a U.S. district court judge’s dismissal of their lawsuit against the Trump administration. The lawsuit claims that the $10,000 cap on federal deductions for state and local property taxes is unfair.
A U.S. circuit court judge had dismissed the case on the grounds that Congress has broad tax powers.
The four states, Connecticut, New York, Maryland and New Jersey, argued that those powers cannot be used in a discriminatory way.
Connecticut Attorney General William Tong says Congress has a duty to treat all states equally.
“Here they are treating us differently because they want to punish Connecticut and so-called blue states in a way that for America’s 243 years they have never done.”
He says the cap on SALT deductions would cost Connecticut taxpayers $2.8 billion each year.
The appeal has been filed at the U.S. Court of Appeals for the Second Circuit.
