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U.S. Seeks Dismissal of Suit Over State and Local Tax Deductions

June 18, 2019, 11:16 PM

The U.S. asked a judge to throw out claims by four states suing to nullify the Trump administration’s $10,000 cap on the federal deduction for state and local taxes.

New York, New Jersey, Connecticut, and Maryland sued in July, claiming the 2017 tax-law change targeted them unfairly and overturned more than 150 years of precedent barring the federal government from interfering with states’ taxation policies. The states, all but Maryland led by Democratic governors, claim the change violates the Constitution. They asked U.S. District Judge J. Paul Oetken to block the government from enforcing the cap on the state and ...