NY, NJ, Conn. and MD Sue Feds Over the GOP Tax Bill

New York, New Jersey, Connecticut and Maryland are suing the federal government over the Republican-led tax overhaul.

The lawsuit was filed Tuesday in the Southern District of New York.

The tax law passed by Congressional Republicans and signed into law last year by President Donald Trump caps a deduction for state and local taxes at $10,000. The deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill.

Democratic New York Gov. Andrew Cuomo says the tax bill was crafted specifically to hurt blue states. He says it's also unconstitutional because it interferes with state taxing authority.

"Simply put, the federal government violated the constitution when it imposed new, arbitrary limits on the amount of state and local taxes that residents could deduct on their federal tax returns," New Jersey Attorney General Gurbir Grewal said in a statement.

"Perhaps most concerning," stated Connecticut Governor Dannel Malloy, "this law discriminates against Connecticut taxpayers, who stand to lose over $10 billion in state and local tax deductions. Hundreds of thousands of residents could see a tax increase even as their property values decrease."

Supporters of the tax overhaul dismiss the lawsuit as political, and say that the changes actually reduce taxes for many residents.