Politicians in California, New York, and other high-tax blue states are finding ways to stop the new GOP tax law.
In December, President Donald Trump signed into law the Tax Cuts and Jobs Act of 2017. Only Republicans in the Congress voted for the law, which limits the state and local tax (SALT) deductions at $10,000.
The cap on SALT deductions is a bad deal for taxpayers in California, New York, New Jersey, and Maryland. Residents in these blue states will see significant increases in their personal income tax payments. According to the Institute of Taxation and Economic Policy, California will suffer the largest net tax increase of $12.1 billion.
Blue states considering lawsuit against GOP tax law
The elected officials in these high-tax blue states believe the GOP tax law is an attack on them and their constituents. They believe that law disproportionately hurts taxpayers in their states. They believe that the cap on SALT deductions means double taxation on their constituents.
Governors Jerry Brown of California and Andrew Cuomo of New York are considering a lawsuit against the GOP tax law. Governor-elect Phil Murphy of New Jersey expressed interest to challenge law in the courts.