Connecticut Among States Challenging United States Government Over Tax Deduction Cap
Connecticut is suing the federal government over Republican tax cuts. The $1.5 trillion cuts were signed by President Donald Trump in December and included a cap on federal deductions for state and local tax, or SALT.
The provision hits high-property-tax states like Connecticut particularly hard.
Governor Dannel Malloy said Tuesday that the SALT cap could cost Connecticut residents $10 billion.
“We had already announced that we were joining months ago, and so, this is the actual bringing of the lawsuit,” Malloy said. “I’m thankful. I think we have an operational political theory, or group of theories, that need to see the light of the day in a court.”
Attorney General George Jepsen filed the lawsuit on Connecticut’s behalf. He said this has been in the works since Trump signed the cuts into law because he believes the law violates the fundamental tenets of federalism.
“Certain powers are reserved for the federal government,” Jepsen said. “Other powers are reserved for the state. And it’s very clear here that in passing this tax law and eliminating the deduction, it was an attempt to have an impact on state tax policy.”
The lawsuit was initiated by the New York attorney general’s office. Connecticut joined New York, New Jersey, and Maryland as plaintiffs in the suit.