NEW YORK (Reuters) – A federal appeals court on Tuesday rejected efforts by four Democratic-leaning U.S. states to overturn former Republican President Donald Trump’s decision to limit federal deductions on state and local taxes.
In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan said the federal government had authority to impose a $10,000 cap on the state and local taxes that households itemizing deductions could write off their federal returns.
(Reporting by Jonathan Stempel in New York)
