Four Democrat-controlled states, upset that President Trump’s tax reform plan will expose how ridiculously high their state and local taxes are, are attempting to persuade a federal court to declare Trump’s tax plan unconstitutional.
New York, New Jersey, Connecticut, and Maryland sued the federal government Tuesday, claiming that federal taxes now single out blue states, the Associated Press reports. New York’s Democratic Gov. Andrew Cuomo said the lawsuit was a practical act of self-defense against the federal government.
“This is their political attempt to hurt Democratic states,” said Cuomo. “It’s totally repugnant.”
New York’s Attorney General Barbara Underwood announced the lawsuit on Twitter. The issue is the new law’s $10,000 cap on deductions for state and local taxes. Homeowners in blue states with high property taxes will pay higher federal income taxes because they can’t deduct all of their state’s high taxes when they file their federal taxes.
#BREAKING: We just filed suit to protect New Yorkers from the federal government's unconstitutional tax law, which drastically cuts the state and local tax deduction. New York will not be bullied. https://t.co/MVH4wfbpZ0 pic.twitter.com/0vtxLYgh8c
— NY AG Underwood (@NewYorkStateAG) July 17, 2018
The new cap on deducting state and local taxes is unconstitutional for 2 key reasons.
It goes beyond settled limits on the federal government’s power to impose an income tax.
And it deliberately targeted—and will disproportionately harm—New York and similar states.
— NY AG Underwood (@NewYorkStateAG) July 17, 2018
The cap will cost New Yorkers an additional $14.3 billion in 2018 alone.
That is outrageous. We won't stand by and let Washington pick the pockets of New Yorkers—so we've filed suit against this unconstitutional attack on NY and our state's fundamental rights.
— NY AG Underwood (@NewYorkStateAG) July 17, 2018
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