Albany NY – New York, New Jersey, Connecticut and Maryland are suing the federal government over the Republican-led tax overhaul.
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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 deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill.
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.
Seems to me that the same argument can be made in reverse. An increase in the deduction limit to above $10,000 targets the very same States.
Further to my previous post, here in Canada there is no deduction at all, of any kind, from Federal tax when paying any other tax. So from this perspective, any deduction at all is completely targeting Blue States. These States should now return all the past deductions as they were all illegitimate.
90% of frumme yiden live in this 4 States. If Obama would have done such a discrimination against States where 90% of Jews live many would have called him an Anti-semite.
I don’t see a case here. How does making state tax payments not deductible from federal taxes interfere with state tax law.