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Maryland to sue U.S. government over new federal tax bill

NEW YORK, Feb 1 (Reuters) - Maryland’s attorney general said on Thursday the state will join New York, New Jersey and Connecticut in filing a lawsuit to challenge the constitutionality of the new federal tax bill.

The lawsuit will focus on the legality of the bill’s $10,000 limit on deductions of state and local income and property taxes, state attorney general Brian Frosh said. The provision will affect many taxpayers in states with high incomes, property values and taxes, including New York, New Jersey, Connecticut and California.

The tax bill ... is really a challenge to state sovereignty,” Frosh said in an interview with Reuters. Frosh said the bill was a Republican “attempt to undercut” states where Democrats were in the majority.

Frosh said the lawsuit could be filed in the next week or two.

On Friday, the governors of New York, New Jersey and Connecticut said they were forming a multi-state coalition against the tax bill and will sue the federal government.

New York Governor Andrew Cuomo said there were “very strong” arguments that the bill violates states’ rights as well as the Equal Protection clause in the U.S. Constitution.

Frosh said he anticipates more states will join the lawsuit.

The tax bill’s changes to itemized deductions will impact nearly 600,000 Marylanders who will lose $6.7 billion in deductions, a statement from Frosh’s office said.

Reporting by Stephanie Kelly; Editing by Daniel Bases and Grant McCool