Gov. Phil Murphy Considers Legal Action Against Trump Administration For New Tax Rules

Follow CBSPHILLY Facebook  | Twitter

WASHINGTON (CBS/AP) — The Trump administration is laying down new rules aimed at preventing residents in high-tax states from avoiding a new cap on widely popular state and local tax deductions.

The governors of New York and New Jersey, along with a state senator from California, are decrying new rules from the Trump administration that aim to block high-tax states from getting around a cap on state and local deductions.

New York Gov. Andrew Cuomo is calling the moves politically motivated and he's threatening to sue the federal government over it. New Jersey Gov. Phil Murphy says the state is also weighing its options to take legal action.

He called the tax hike "unfair and arbitrary" in a tweet Thursday evening.

"We are prepared to fight back tooth and nail against any attempts by the IRS or Trump administration to block localities from setting up charitable funds to help New Jersey taxpayers preserve their deductibility," Murphy said in a statement.

Murphy also stated that President Donald Trump and his administration holds New Jersey and the taxpayers in contempt.

"It's President Trump's view that New Jersey is just an ATM to withdraw from," Murphy said in a press conference Friday morning.

State Attorney General Gurbir Grewal released a statement also affirming that they will push back against these new tax rules.

California State Sen. Kevin de Leon also says he expects the state to sue.

All three are Democrats who say the rules are politically motivated to attack Democratic-leaning states whose residents could see substantial increases in their federal tax bills next spring because of the $10,000 cap.

Republicans have said those states should reduce their taxes instead of fighting the administration.

(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)