NJ Politics Digest: State Files Suit Over Federal SALT Limits

Treasury Secretary Steven Mnuchin.

Treasury Secretary Steven Mnuchin. Alex Wong/Getty Images

Blue state Democrats have been saying it for a long time, and now New Jersey has joined a coalition of predominately Democratic states that have filed a lawsuit saying the new federal tax law is a politically motivated attack on them.

New Jersey, New York, Connecticut and Maryland have filed the federal suit that claims newly imposed federal limits on deducations for state and local taxes (SALT) infringe on the constitutional right of states to set fiscal policy, according to a report by POLITICO.

The 52-page complaint contends the tax plan passed earlier this year violates the constitution. It also cites comments by Treasury Secretary Steven Mnuchin that the $10,000 limit for deductions for state and local taxes was crafted to “send a message” to high-tax states controlled by Democrats to bring their spending under control.

The suit, which claims the changes will force New Jersey residents to pay $3.1 billion more in federal taxes, seeks to have the tax law declared unconstitutional. It also asks the court to stop the IRS from enforcing the cap on SALT deductions, according to POLITICO.

Quote of the Day: “Plastic bags for windows, sheets of cardboard for windows, comforters stuck in holes in the wall. I’m not exaggerating. Stuff like that’s horrific.” — Dave Hodgson, a former assistant coach of a women’s professional soccer team whose majority owner is Gov. Phil Murphy, describing the team’s housing conditions last year.

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NJ Politics Digest: State Files Suit Over Federal SALT Limits