New York, New Jersey and Connecticut on Friday announced they had launched a coalition to sue the federal government to challenge the recently passed tax bill and its reduction in state and local tax deductibility. Governors of the three states said in a statement that the tax-law changes “unfairly target” states whose residents have come to rely on being able to deduct big local tax burdens from their federal tax returns. New Jersey Gov. Phil Murphy called the changes “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.” In New York, Gov. Andrew Cuomo has also pledged to “launch a repeal-and-replace strategy,” and to “explore the feasibility of a major shift in the structure of state tax policy.”
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