New York, New Jersey and Connecticut are again suing President Donald Trump’s administration over a provision in the 2017 tax law that limited write-offs for state and local taxes, Bloomberg News reported. The lawsuit filed yesterday asks a court to stop recent Internal Revenue Service regulations that invalidated state workarounds to help residents maximize the amount of state and local taxes, or SALT, they could deduct. The effort is one of several to reverse one of the most politically contentious changes in Trump’s 2017 tax law, and it’s not clear if it will get any more traction. The 2017 Republican tax law limited the amount of SALT deductions to $10,000. Write-offs were previously unlimited. Democrats in Congress and state lawmakers said the change was intended to target Democratic-led states that tend to have higher taxes. New York Governor Andrew Cuomo called it “economic civil war.” This is the second lawsuit northeastern states have filed in an attempt to nullify the SALT cap. The village of Scarsdale and the town of Rye, both wealthy New York City suburbs, also filed a lawsuit against the IRS regulations Wednesday. Last year, the states sued the Trump administration seeking to get the cap itself declared unconstitutional. That case, which many legal experts also say is a long-shot, is still working its way through the courts.
