New York, New Jersey and Connecticut say they will sue federal government over caps on tax deduction

[sl8]

Link to related LBN post

om: https://www.cnbc.com/2018/01/26/new-york-new-jersey-connecticut-plan-to-sue-federal-government-over-salt-caps.html


New York Governor Andrew Cuomo
Getty Images
New York Governor Andrew Cuomo

New York, New Jersey and Connecticut say they will sue federal government over caps on tax deductions

* Three states have formed a coalition, intending to challenge the new tax code.

* State officials argue that the curtailment of the state, local and property tax deductions unfairly impacts them.

Annie Nova | Darla Mercado
Published 1:24 PM ET Fri, 26 Jan 2018 Updated 1:39 PM ET Fri, 26 Jan 2018

New York Governor Andrew Cuomo
In the latest battle over state and local tax deductions, New York's governor Andrew Cuomo announced that the Empire State, along with New Jersey and Connecticut, plan to sue the federal government.

Cuomo announced the formation of a coalition between the three states on Friday, Jan. 26 to challenge the Tax Cuts and Jobs Act, arguing that the new code "preempts the states' ability to govern by reducing the ability to provide for their own citizens and unfairly targets New York and similarly situated states in violation of the Constitution."

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[Faux pas]

1. Kickin'

[irisblue]

2. Good

[MadDAsHell]

3. ugh...our government is starved for revenue and we're suing for more deductions?

[bucolic_frolic]

4. It's going to have to be a novel take on some aspect of the Constitution

"unfair" is not the basis for much. Maybe they can find an unequal clause, or apportionment.

[smirkymonkey]

5. K&R

[tritsofme]

6. This lawsuit seems more based in showing voters they are doing "something" than anything else.

It is pretty clear Congress can set its preferred tax policy, regardless of how the governor of New York feels.

[BadgerMom]

7. K and R

[customerserviceguy]

8. All for show

It won't get anywhere. Congress has the right to set tax policy for the United States, whether we like the outcome or not. I cannot think of anything other than one instance where the courts overruled the letter of the law on taxes. That involved allowing a widow to use the married filing jointly filing status for two years after the death of her husband, if there were minor children being claimed as dependents in the household. A widower sued and won, saying that the law was discriminatory against men.

I just moved out of NY last year, and I love it in SC. I spent ten years in NY, and watched them piddle money away like nobody's business, yet the roads were full of potholes, signs were obscured with vegetation, etc. The solution to this is to get the tax burden down on New Yorkers, New Jerseyans, etc. so that they won't be so severely tempted to get out as soon as they are able to do so.

My neighborhood here in SC is full of people who escaped high tax states in the Northeast. I guess I'm not the only one to think the way I do.