The governors of New York, New Jersey and Connecticut said Friday they are forming a multistate coalition to sue the Trump administration over the 2017 tax bill, challenging the constitutionality of a provision that limits Americans' ability to deduct their state and local taxes from their federal bill.
The law sets a new cap of $10,000 on the amount of state and local property and income taxes that can be deducted from federal taxable income. That will disproportionately harm their residents, the governors said in a conference call, and is motivated by politics rather than sound fiscal policy.