New York Governor, Andrew Cuomo, said in his annual State of the State address that NY would sue the federal government over the new tax law, which he said, harm his state through the limiting of a tax provision. He called the law “the first federal double taxation in history.” “We believe it is illegal, and we will challenge it in court as unconstitutional,” he said.
The tax legislation was passed last month mainly along party lines. It contained a provision that limited a previously uncapped deduction on state and local taxes. It’s believed that cap would hurt blue states more than red states. Cuomo also said that New York state would launch a lobbying campaign aimed at repealing and replacing the law.
The tactics are part of a three-pronged approach laid out by the Governor to combat the effects of the tax law. The third is restructuring New York State’s tax code, shifting from a code that relies on income tax to a payroll tax system. It could also include the creation of charitable organizations for which contributions would be deductible.
Cuomo said, “It is complicated, it is difficult, but it is clear that we must protect New York taxpayers from this [federal] assault.”