NEW YORK (Reuters) – A federal appeals court on Tuesday rejected attempts by four Democratic-oriented US states to overturn former Republican President Donald Trump’s decision to limit federal deductions from state and local taxes. In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan said the federal government had the authority to impose a $10,000 cap on state and local taxes so that households’ deductions could exceed their federal tax bills. could depreciate returns. The decision is a defeat for New York, Connecticut, Maryland and New Jersey, which challenged the so-called SALT cap implemented as part of a $1.5 trillion tax reform in 2017.