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Blue states file suit against the US over tax deduction limits

July 17, 2018

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New York, Connecticut, Maryland and New Jersey are suing the federal government, alleging that the new $10,000 cap on state and local tax deductions (SALT) is an “unconstitutional assault on states’ sovereign choices.”

New York governor Andrew Cuomo announced the lawsuit on Tuesday morning, naming Steven Mnuchin, U.S. Treasury Secretary, and David Kautter, acting commissioner of the Internal Revenue Service, among the defendants. The lawsuit is filed in the Southern District of New York.

“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,” said Cuomo.

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