In the latest battle over state and local tax deductions, New York's governor Andrew Cuomo announced that the Empire State, along with New Jersey and Connecticut, plan to sue the federal government.
Cuomo announced the formation of a coalition between the three states on Friday, Jan. 26 to challenge the Tax Cuts and Jobs Act, arguing that the new code "preempts the states' ability to govern by reducing the ability to provide for their own citizens and unfairly targets New York and similarly situated states in violation of the Constitution."
The new tax law includes a provision that caps state and local tax (SALT) deductions at $10,000.
In 2015, the average New Yorker's SALT deduction was $22,000. Meanwhile, residents in New Jersey and Connecticut claimed nearly $20,000 in SALT deductions.