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Four States Claim Federal Tax-Deduction Cap Infringes Rights

  • 2017 tax law overturns 150 years of precedent, states say
  • New York, New Jersey, Connecticut, Maryland file lawsuit

Photographer: Craig Warga/Bloomberg

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Four Democratic-led northeastern states sued the Trump administration to invalidate the new $10,000 cap on the federal tax deduction for state and local taxes that they say unfairly targets them.

New York, New Jersey, Connecticut and Maryland claim the sweeping 2017 federal tax law overturned more than 150 years of precedent. The state and local tax deduction is essential to prevent federal tax powers from interfering with constitutionally guaranteed state rights, according to the lawsuit.