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New York, 3 Other States Sue Over State And Local Tax Deduction Cap

July 17, 2018 - 12:51 pm
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NEW YORK (WCBS 880) -- New York, New Jersey, Connecticut, and Maryland are all suing the federal government over the tax overhaul signed into law last year.

As WCBS 880's Steve Burns reported, New York Acting Attorney General Barbara Underwood is framing the issue as one of states’ rights.

“For the entire history of our nation until now, every single federal income tax law has provided the deduction for nearly all state and local taxes in order to protect the right of the states to invest as necessary,” Underwood said.

But the law passed last year caps state and local tax deductions at $10,000, which Underwood, along with attorneys general in the other three states, all see as a specific attack on blue states.

“Seeking to coerce our states to change our fiscal policies and the important investments and services those policies support,” Underwood said.

Gov. Andrew Cuomo agreed that states that vote Democratic were targeted for punishment by the tax plan.

“It is politically motivated and it was politically targeted,” Cuomo said. “Stephen Moore, the conservative economist who advised the Trump campaign, said the Republican tax bill represents death to the Democrats.”

The suit was filed in U.S. District Court in Manhattan.