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Four 'blue' states to sue federal government over local tax deduction loss

The governors of New York, New Jersey, Connecticut and Maryland on Tuesday introduced they'd sue the federal government for putting off taxpayers' skill to deduct the overall amount of state and native taxes they pay from their federal returns. New York Governor Andrew Cuomo referred to as the so-called SALT tax legislation change, handed in late 2017 by means of Congressional Republicans, "un-American." He added: "What you did was you divided the states, you penalized the Democratic states." The suit seeks a court docket judgement that the tax coverage is unconstitutional, and likewise asks for injunctive aid, Cuomo said. Among other precedents, it cites the 16th Amendment, which says the federal government's tax energy cannot be used to intervene on the sovereign government of the states to determine their own fiscal policies. Policymakers and advisors, in drafting the federal tax coverage, spoke overtly about their need to punish states with majority Democratic bases, the suit notes.