The State and Local Taxes (SALT) deduction is fatally flawed and must be eliminated.
“Congress … cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.” (Eisner v. Macomber, 252 US 189, 206.) The Constitution does not permit the SALT Deduction.
Congress has the power and obligation to oversee Federal taxation and its approval of the SALT deduction obligates it to oversee that deduction. To do so necessitates that the Federal Government review and qualify the tax schemes of each state and each locality to determine that each is compatible with the Constitution and the Federal laws that flow therefrom; and, Congress must monitor ongoing compliance which presents significant issues.
There is no apparent plan in Congress to provide the required oversight.
A glaring problem with the deduction is presented by so-called “sanctuary” cities, counties and states throughout the nation that flaunt federal law. The SALT deduction allows tax relief in the said sanctuaries and that relief directly or indirectly supports their illegal conduct, i.e., acting as sanctuaries. How can Congress justify such support for illegal activities?
Another issue is that the oversight plan invades the rights of the states as to what each must do to qualify for the SALT Deduction. Congress is getting involved in an area outside its realm of enumerated and implied Constitutional powers and by its very nature, the SALT Deduction does not provide for the General Welfare.
For the above reasons, Congress lacks authority to approve the State and Local Tax Deduction – It is fatally flawed. To avoid a court challenge, Congress must act properly and eliminate the SALT deduction now.