Is Capping the Deduction for State and Local Taxes Constitutional?

Posted: 18 Apr 2018

See all articles by Erik M. Jensen

Erik M. Jensen

Case Western Reserve University School of Law

Date Written: April 12, 2018

Abstract

In the Tax Cuts and Jobs Act of 2017, Congress capped the deduction available for state taxes not attributable to businesses or investments, and representatives of high-tax states are challenging the constitutionality of that cap — which, they argue, was motivated by animus. This article considers several possible rationales for a challenge — intergovernmental tax immunity, political animus in general, the uniformity rule, and equal protection — and concludes that the case for overturning the cap on constitutional grounds is weak at best.

Keywords: cap on deduction for state and local taxes, animus, intergovernmental tax immunity, Uniformity Clause, equal protection

JEL Classification: K34

Suggested Citation

Jensen, Erik M., Is Capping the Deduction for State and Local Taxes Constitutional? (April 12, 2018). Journal Taxation of Investments, Spring 2018, at 27; Case Legal Studies Research Paper No. 2018-2. Available at SSRN: https://ssrn.com/abstract=3161735

Erik M. Jensen (Contact Author)

Case Western Reserve University School of Law ( email )

11075 East Boulevard
Cleveland, OH 44106-7148
United States
216-368-3613 (Phone)
216-368-2086 (Fax)

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