In addition, the plaintiff states argued that the IRS new rule is “arbitrary, capricious” and “violates the Regulatory Flexibility Act.”
IRS new rule unfairly targets blue states
During a press conference, New Jersey Gov. Murphy said, “As I said when the IRS rule was finalized in June, it was nothing more than a gut punch to the middle-class New Jersey families who know that the Trump tax plan is a complete sham. It was a complete and total utter politicization of the federal tax code.”
In a statement, New York Gov. Andrew Cuomo commented, “The Trump administration and the IRS are trying to undermine states’ efforts to protect our taxpayers against the unprecedented, unlawful and politically motivated capping of the SALT deduction. The final IRS rule flies in the face of a century of federal tax law that says state choices to provide tax incentives for charitable donations do not affect the federal deductibility of those gifts. Our message to Mr. Trump and the IRS is simple: we look forward to seeing you in court.”
