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Coalition formed to sue federal government over tax bill

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Staff Writer |
New York
America   New York, New Jersey, and Connecticut

New York, New Jersey, and Connecticut have launched a coalition to sue the federal government to challenge the new GOP tax bill that eliminates full state and local tax deductibility.

This provision effectively preempts the states' ability to govern by reducing the ability to provide for their own citizens and unfairly targets New York and similarly situated states in violation of the Constitution.

The new federal law disproportionally impacts the State of New York, which already sends $48 billion more each year to Washington than it receives in federal dollars—a far more extreme "balance of payments" shortfall than any other state.

According to a recent report released by the State Department of Tax and Finance, the elimination of full SALT deductibility alone will cost New York an additional $14.3 billion.

The elimination of full SALT deductibility also rolls back a basic foundation of federal tax law that has always allowed states to raise revenues that are not double taxed.


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