New York, New Jersey, Connecticut Sue Over Tax Overhaul
ALBANY, N.Y. (CBSnewYork) — New York, New Jersey, Connecticut and Maryland are suing the federal government over the Republican-led tax overhaul.
The lawsuit was filed Tuesday in the Southern District of New York.
The tax law passed by Congressional Republicans and signed into law last year by Republican President Donald Trump caps a deduction for state and local taxes at $10,000. The SALT deduction is especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill.
READ THE LAWSUIT: Civil Action No. 18-cv-6427
Democratic New York Gov. Andrew Cuomo says the tax bill was crafted specifically to hurt blue states. He says it's also unconstitutional because it interferes with state taxing authority.
Supporters of the tax overhaul dismiss the lawsuit as political and say that the changes actually reduce taxes for many residents.
In January, New York leaders from both parties called for creative solutions to avoid state property owners from being overly penalized by the tax code.
"What the Trump Administration enacted with the SALT deduction cap was nothing more than a tax hike," said New Jersey Governor Phil Murphy in a statement.
Cuomo has been among the most vocal against the tax overhaul, saying it "benefits the 1% at the expense of middle-class families."
Republican lawmakers countered in New York, the Democratic leaders' lack of plan led to the reworking of the tax plan.
"If the governor were truly serious about encouraging lower taxes and promoting affordability, he wouldn't have advanced a budget that sought to increase taxes by $1 billion, including new DOT fees and a new tax on internet purchases," said New York Senate Majority Leader John J. Flanagan in statement following today's accouncement. "It took Senate Republicans to beat back those proposed tax hikes."
