Hamilton Gives Cuomo His Shot: States Sue Over Federal Tax Cap (3)

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, but the chances for success are dim.

And a divided Congress is unlikely to revisit the cap, lawmakers and practitioners told Bloomberg Tax.

New York, New Jersey, Connecticut, and Maryland claim the sweeping 2017 federal tax law (Pub. L. No. 115-97) “targeted” the states and 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 ...