Before the close of 2017, Republican President Donald Trump and his right-wing congressional enablers made good on their threat to dramatically reshape America’s tax code.
Within the tax legislation were provisions aimed specifically at punishing many of the “blue states” whose residents did not support candidate Trump during the 2016 presidential election. Thankfully, the governors of three “blue states” have joined forces to push back at this harmful legislation.
As one of the more insidious provisions in the new tax law, Americans will no longer be able to deduct state and local taxes from their federal tax obligations. This, of course, affects residents of “blue states” disproportionally, as these states tend to have higher state and local taxes. The governors of New York, Connecticut and New Jersey just announced their alliance to counter this provision by threatening a lawsuit claiming that the provision is unconstitutional. Stated New York Governor Andrew Cuomo in their joint press release, “New Yorkers will not stand idly by as the federal government fires an economic missile at the fiscal health of our state. The elimination of full state and local deductibility is a blatantly partisan and unlawful attack on New York that uses our hardworking families and tax dollars as a piggy bank to pay for tax cuts for corporations and other states. This coalition will take the federal government to court to protect our residents from this assault.”
Added Connecticut Governor Dannel P. Malloy, “The GOP tax legislation gave massive handouts to the wealthiest one percent and stuck middle class taxpayers with the bill. In short, this law does real harm to Connecticut taxpayers, who stand to lose over 10 billion dollars in state and local tax deductions. Hundreds of thousands of residents could see a tax increase even as their property values decrease. The coalition we launch today will fight against the discriminatory impacts of this shortsighted and damaging Republican law on our states.” Contributed New Jersey Governor Phil Murphy, “Capping the State and Local Tax deduction had nothing to do with sound policy. It is a clear and politically motivated punishment of blue states—like New Jersey and our neighbors—who already pay far more to the federal government than we receive. We will not stand by and allow this to happen. I pledged that my administration would explore every legal mechanism to fight for New Jersey taxpayers, and that is exactly what we are doing today. I am proud to have Governors Cuomo and Malloy join New Jersey in our efforts.” Are you glad these three Democratic governors are fighting back?