Wednesday, July 18, 2018

4 blue states sue Washington over GOP tax overhaul

AP reports:
New York, New Jersey, Connecticut and Maryland sued the federal government over the Republican-led tax overhaul Tuesday, alleging the new law championed by President Donald Trump unfairly singles out high-tax blue states.

The lawsuit, filed in the Southern District of New York, was dismissed as a long-shot political stunt by supporters of the new tax code, but New York Gov. Andrew Cuomo said it is a practical act of self-defense against an adversarial federal government. The challenge alleges that lawmakers crafted the new tax code to target left-leaning states and interferes with their constitutionally granted taxing authority.


“This is their political attempt to hurt Democratic states,” said Cuomo, a Democrat who is considered a possible White House contender in 2020. “It’s totally repugnant.”

The tax law passed by Congressional Republicans and signed into law last year by 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. New York estimates that taxpayers will pay $14 billion more in 2018.
The struggles of Blue America..............