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The States complain about the SALT deduction cap
New York Congressman Lee Zeldin does not discuss why he is suing concessions to the choice for the GOP tax reform plan, and States an upper limit for state and local tax.
A coalition of the high taxes in blue States sued the Federal government, calling for the Republicans, tax overhaul, singles you by the limitation sought-after deduction.
The lawsuit from New York, New Jersey, Connecticut and Maryland fraud in their latest bid to fight for, and the limit for state and local tax (SALT) deductions made by the GOP-authored tax plan.
“The Federal government is pig obsessed with New York as a savings to pay for corporate tax cuts, and I’m not going to stand for it,” New York Gov. Andrew Cuomo, who is running for re-election and is said to be the possible 2020 presidential candidate, in a statement.
The tax law last year, signed those SALT-tax deductions the $10,000 cap, -.
The deduction is increased especially popular in the high-tax, Democratic States, in which many home owners see big, in your federal tax bill by the amendment. New York estimates that taxpayers pay $14 billion more in 2018.
The lawsuit, filed Tuesday in the Southern district of New York, was dismissed as a long-shot political Trick of the supporters of the new tax code.
But the challenge is claimed that the legislature crafted the new tax code, the opponents of left-wing States. It claims that the move interferes with the constitutionally granted to the tax authority.
“This ceiling is unconstitutional – the said, far in excess of the fixed limits on Federal power to an income tax to impose,” New York Attorney General Barbara Underwood said in a statement.
The suit names the Internal Revenue Service and the U.S. Treasury Department as a defendant. Cuomo first announced to sue plans seven months and was quickly connected to the conductors of the other States.
While the new law tax cuts for businesses and individuals, the taxpayer change in high-tax countries such as those in the North East to expect a hit of SALT return. Some Republicans from those States joined Democrats in the past year in voicing concerns about the change in the creation of the invoice.
But critics dismissed the lawsuit as a political Scam, is probably not the upper hand in the courts.
When it comes to the taxation of the Americans, “the Congress can really do what he wants,” said the tax Foundation’s executive vice president, and Joseph Bishop-follower. “It’s not really much of a case.”
Republicans said the plaintiffs, the member States should focus on the reduction of the costs of state taxes instead of via Washington.
“New York can’t complain the way out of the high taxes,” said the New York state Senate leader John Flanagan, R-Long Island.
The Associated Press contributed to this report.