On May 3, 2017, the Commonwealth of Puerto Rico declared bankruptcy under the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”).1 Puerto Rico is now in the unique position of being the first U.S. territory to ever declare bankruptcy. Local governments have been bankrupt before with Detroit being a notable recent example.2 In fact,…
Author: Manas Kumar
The Consequences of Eliminating State and Local Tax Deductions: Double Taxation and Tax Controversy
The Trump Administration recently passed a comprehensive tax reform package, which includes restrictions on state and local tax (“SALT”) deductions from federal income returns.1 For the fiscal year 2017, the Internal Revenue Code permits deductions for state, local, and foreign taxes relating to income and property taxes.2 Proponents argue that restriction of the deduction will…