Wednesday, July 18, 2018

Four States Sue D.C. Over Federal Tax Deduction Cap

Connecticut, Maryland, New Jersey, and New York are fighting the $10,000 federal deduction cap instituted under Trump’s $1.5 trillion tax overhaul.

New York Governor Andrew Cuomo said: “The federal government is hell-bent on using New York as a piggy bank to pay for corporate tax cuts and I will not stand for it.” The lawsuit alleges that the new cap on deductions “exert[s] a power akin to undue influence” over state tax laws. With an average deduction of $22,000, New Yorkers will end up paying about $14 billion more in taxes in 2018 alone.

Cuomo’s concerns, and those of the other states, are manifold. First, that the cuts unfairly target “blue” states, and depress real estate prices. Further, they claim that the cap will lower spending, inhibit job creation, stifle economic growth, and make it addressing infrastructure costs significantly more difficult.

Read more >>

No comments:

Post a Comment