States sue U.S. to void state and local tax deduction cap

[Eugene]

Source: Reuters

NEW YORK (Reuters) - Four U.S. states sued the federal government on Tuesday to void the new $10,000 cap on federal deductions for state and local taxes included in President Donald Trump’s 2017 tax overhaul.

The lawsuit by New York, Connecticut, Maryland and New Jersey came seven months after Trump signed the $1.5 trillion overhaul passed by the Republican-led Congress, which cut taxes for wealthy Americans and slashed the corporate tax rate.

Critics have said the cap would disproportionately harm “blue” states that tilt Democratic.

Tuesday’s lawsuit adds to the many legal battles between such states, including several with high taxes, and the Trump administration, which was accused of unconstitutionally intruding on state sovereignty by imposing the cap.

-snip-

U.S. JULY 17, 2018 / 10:09 AM / UPDATED 6 HOURS AGO
Jonathan Stempel
4 MIN READ


Read more: https://www.reuters.com/article/us-usa-taxes-lawsuit/states-sue-u-s-to-void-state-and-local-tax-deduction-cap-idUSKBN1K71PO

[PoliticAverse]

1. Rather unlikely to succeed. Lots of Federal programs/laws "disproportionally" affect some states...

and are constitutional.

[beachbum bob]

2. This will go nowhere fast, waste of taxpayers money

[7962]

3. I agree with posts #1 & #2. But I'm not a lawyer.

Just seems like no "standing"

[MichMan]

4. Isn't this the same as claiming that raising taxes on the wealthy....

…...disproportionally affects some states more than others?

Every tax law will not affect all states exactly the same depending on the demographics of the residents.