VESTAL, NY (WSKG) – New York is joining a lawsuit against the Trump Administration against the IRS.
Connecticut and New Jersey are also on the suit.
The states claim the IRS acted unlawfully when it said in June the states can’t create workarounds to limit the effect of the state-and-local tax, or SALT, deduction on residents.
That limit was part of 2017 changes to the federal tax code that limits SALT deductions to the $10,000 dollars. Before there was no limit.
Critics have said the change unfairly targets residents in high-tax states, like New York. The state created changes that gave residents tax credits for contributions to charity to help off-set the changes to SALT.
“This is entirely unacceptable and as I’ve said before, the IRS should not be used as a political weapon,” said New York Governor Andrew Cuomo in a statement. “The IRS regulations lack any basis in the law, upend decades of precedent without authorization from Congress, and target programs established by New York and other states to incentivize charitable contributions.”