4 States file long-shot suit against cap on tax deduction – IOTW Report

4 States file long-shot suit against cap on tax deduction

WaTimes: Several states followed through on pledges to sue over Congress’ $1.5 trillion tax cut law, saying in a long-shot lawsuit filed Tuesday that it infringes on their rights to set their own spending policies and unfairly singles them out for punishment.

The lawsuit, filed in federal court by the attorneys general of New York, New Jersey, Connecticut and Maryland, argues that a $10,000 limit on the amount of state and local taxes that residents can deduct from their federal returns exceeds Congress’ taxing authorities.

“The federal government is hellbent on using New York as a piggy bank to pay for corporate tax cuts, and I will not stand for it,” said New York Gov. Andrew Cuomo. “We will fight back at every turn against President Trump and the federal government’s partisan assault to protect the people of New York.”

The lawsuit argues that the tax law violates the 10th Amendment governing states’ rights by infringing on their authority to make sovereign decisions on local investments, and that federal lawmakers have acknowledged that the cap was intended in part to force states to reduce their spending.

The lawsuit also says the cap exceeds Congress’ constitutional authority to impose and collect taxes because it coerces states into lowering their taxes and then cutting services that the taxes support. read more

13 Comments on 4 States file long-shot suit against cap on tax deduction

  1. “…it coerces states into lowering their taxes and then cutting services that the taxes support.”

    No it doesn’t. It just makes it harder for State incumbent politicians to be reelected.

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  2. Then repeal the cap altogether. If Congress can’t impose a limit to a cap, then they shouldn’t be able to authorize a cap of any kind. The first year New Yorkers can’t deduct their state taxes from a federal income return will be the last year any incumbents are elected.

    It would still be a sucky burden for the average guy though.

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  3. How do they figure that? They can tax as much as they want. The fact the the US Government will not let people in those states deduct those taxes from their federal returns is irrelevant. The tax bill does nothing to prohibit states from collecting taxes.

    Besides, I thought leftists think everyone should pay more in taxes anyway.

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  4. SUMMARY: “We’re high-tax states and like scr*wing our residents that way so, even though you’re taxing at a Federal level, your limiting of how much WE can steal at a State level is unconstitutional!”

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  5. The suing states aren’t just wrong, they’ve got it backwards.

    Feddle tax deductions for state and local taxes (SALT) mean that for a given level of fed revenue, a higher proportion comes from low-SALT states than would be true otherwise. High-SALT states have in effect been using the SALT deductions to shift money from other states to their own.

    Just one more way the crooked pols steal other people’s money, but in this case it is virtually taxation without representation

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  6. Hate to disagree with you CRYOJOHN, but the dirt bags here in the People’s Republic of NY that keep electing this POS don’t pay taxes. There are more takers than makers in this Godforsaken state (https://www.forbes.com/sites/baldwin/2015/12/22/which-are-death-spiral-states/#1d9440f06840). If my kids hadn’t put down roots here, I’d be outta NY faster than shit goes through a Goose! I’ll be the last schmuck here paying taxes. I’ll turn the lights out when I leave

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