Connecticut Governor Dannel P. Malloy, New Jersey Governor Philip D. Murphy, and New York Governor Andrew M. Cuomo today announced that they are launching a multi-state coalition to sue the federal government to challenge the new GOP tax bill that eliminates the full state and local tax deductibility.
They say this provision effectively preempts the states’ ability to govern by reducing the ability to provide for their own citizens and unfairly targets them and similarly situated states in violation of the constitution.
“The GOP tax legislation gave massive handouts to the wealthiest one percent and stuck middle class taxpayers with the bill,” Malloy said. “In short, this law does real harm to Connecticut taxpayers, who stand to lose over 10 billion dollars in state and local tax deductions. Hundreds of thousands of residents could see a tax increase even as their property values decrease. The coalition we launch today will fight against the discriminatory impacts of this shortsighted and damaging Republican law on our states.”
“Capping the state and local tax deduction had nothing to do with sound policy,” Murphy said. “It is a clear and politically motivated punishment of blue states — like New Jersey and our neighbors — who already pay far more to the federal government than we receive. We will not stand by and allow this to happen. I pledged that my administration would explore every legal mechanism to fight for New Jersey taxpayers, and that is exactly what we are doing today. I am proud to have Governors Cuomo and Malloy join New Jersey in our efforts.”
“New Yorkers will not stand idly by as the federal government fires an economic missile at the fiscal health of our state,” Cuomo said. “The elimination of full state and local deductibility is a blatantly partisan and unlawful attack on New York that uses our hardworking families and tax dollars as a piggy bank to pay for tax cuts for corporations and other states. This coalition will take the federal government to court to protect our residents from this assault.”