Tax wars on SALT

Blue states appeal ruling in lawsuit over GOP tax law deduction cap

New York, New Jersey, Connecticut and Maryland on Tuesday filed a notice of appeal in an effort to further their legal challenge to the GOP tax law's cap on the state and local tax (SALT) deduction.
The appeal from the four blue states comes after a federal district judge in New York dismissed their lawsuit in September. The states are appealing the district court's ruling to the U.S. Court of Appeals for the 2nd Circuit.
"The Trump administration's SALT policy is retribution politics - plain and simple," New York Gov. Andrew Cuomo (D) said in a news release. "New York is already the nation's leader in sending more tax dollars to Washington than we get back every year, and we will not allow this administration to pick the pockets of hard-working New Yorkers to fund tax cuts for corporations and send even more money to red states. We will continue to fight this unconstitutional assault until it is repealed once and for all."

Small rural states did not lose, this is a tax on California and New York metropolitan wealthy. 

The courts will call it a normal tax change and Cuomo loses. Wealthy are migrating out of state, bad news for their tax base. Cuomo is a bit worried about his budget hole and he has DaBlowsio in NYC pushing even more spending. This is early stage Illinois, and Illinois is late stage Michigan.

Cuomo, like Jerry Brown, is caught in a pickle, not necessarily all of his own design. He is desperate enough to pursue an unlikely ruling.