GOP tax cuts were designed to hurt blue states, lawsuit alleges

Connecticut, Maryland, New Jersey and New York, are suing the U.S. government over the Republican-led tax overhaul signed into law by President Donald Trump in December. A lawsuit filed Tuesday in the Southern District of New York claims the tax law was crafted specifically to hurt blue states.

The tax law passed caps a deduction for state and local taxes at $10,000, among other changes. The deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill.

"This cap is unconstitutional – going well beyond settled limits on federal power to impose an income tax, while deliberately targeting New York and similar states in an attempt to coerce us into changing our fiscal policies and the vital programs they support," said New York Attorney General Barbara Underwood in a statement. 

The suit also argues the tax overhaul is unconstitutional because it interferes with state taxing authority.

Supporters of the tax cuts dismiss the lawsuit as political and say that the changes actually reduce taxes for many Americans.