Hold the SALT
After Congress limited the deductibility of state and local taxes, New York and other affected states sued to block the new rules. Arguing that the limit on SALT deductions was imposed as a politically-motivated measure, the high-tax states wanted full deductibility re-imposed. The courts have dismissed the suit. Localities are free to have high taxes, but they should not expect the rest of the country to subsidize their extensive spending through federal tax deductions.
The Facts You Need to Know
For What? States like New York and New Jersey have high taxes, but the “Blue State model” is not accompanied by high-quality services. Read more.
For Whom? The SALT deduction disproportionately benefited taxpayers in just six states. Read more.
Out: New York’s high taxes on its wealthiest residents have contributed to accelerating outmigration by the very rich. Read more.
“Residents of New York...should feel embarrassed and ashamed of their state government’s hijacking of the federal court system for a legally incoherent publicity stunt.”
The Past is Present
“Though it sugarcoats its conclusions, a new study shows Gotham is still the most heavily taxed city in the nation.”
And in other news...
“Nassau and Suffolk are the most fiscally stressed counties in the state, according to a new report by state Comptroller Thomas DiNapoli.”