Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

How servicers continue to protect neighborhoods amid COVID

We spoke with MCS CEO Caroline Reaves about self-service technology, the shift to virtual and how servicers can prepare for post-COVID success by improving processes today.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Real Estate

New York, New Jersey, Connecticut plan to sue federal government over GOP tax bill

Take issue with elimination of state and local tax deductions

The states of New York, New Jersey, and Connecticut are planning to sue the federal government over the Republican-led tax reform bill, which President Donald Trump signed into law late last year.

Among the Tax Cuts and Jobs Act’s many changes to the nation’s tax laws is the elimination of certain state and local tax deductions, often referred to as SALT deductions.

The tax bill installs a cap of $10,000 on SALT deductions, but several states (including New York, New Jersey, and Connecticut) have state and local tax burdens that far exceed $10,000, as noted in this report from CNBC.

From CNBC:

In 2015, the average New Yorker's SALT deduction was $22,000. Meanwhile, residents in New Jersey and Connecticut claimed nearly $20,000 in SALT deductions.

In a statement released Friday by the office of New York Gov. Andrew Cuomo, the three states say that the tax bill SALT provisions unfairly target residents in each state.

“This provision effectively preempts the states’ ability to govern by reducing the ability to provide for their own citizens and unfairly targets New York and similarly situated states in violation of the Constitution,” Cuomo’s office said in the statement.

To that end, New York, New Jersey, and Connecticut are forming a coalition to sue the federal government over the tax plan.

“New Yorkers will not stand idly by as the federal government fires an economic missile at the fiscal health of our state,” Cuomo said.

“The elimination of full state and local deductibility is a blatantly partisan and unlawful attack on New York that uses our hardworking families and tax dollars as a piggy bank to pay for tax cuts for corporations and other states,” Cuomo continued. “This coalition will take the federal government to court to protect our residents from this assault.”

Each of the three states’ governors say that their residents will be harmed by the tax plan.

“The GOP tax legislation gave massive handouts to the wealthiest one percent and stuck middle class taxpayers with the bill,” Connecticut Gov. Dannel Malloy said.

“In short, this law does real harm to Connecticut taxpayers, who stand to lose over 10 billion dollars in state and local tax deductions,” Malloy added. “Hundreds of thousands of residents could see a tax increase even as their property values decrease. The coalition we launch today will fight against the discriminatory impacts of this shortsighted and damaging Republican law on our states.”

Each of the three governors is a Democrat, including New Jersey Gov. Phil Murphy, who was sworn in 10 days ago and pledged to operate much differently than his Republican predecessor, Chris Christie.

“Capping the State and Local Tax deduction had nothing to do with sound policy. It is a clear and politically motivated punishment of blue states—like New Jersey and our neighbors—who already pay far more to the federal government than we receive,” Murphy said.

“We will not stand by and allow this to happen. I pledged that my administration would explore every legal mechanism to fight for New Jersey taxpayers, and that is exactly what we are doing today,” Murphy added. “I am proud to have Governors Cuomo and Malloy join New Jersey in our efforts.”

According to the CNBC report, the governors expect other states to join the lawsuit.

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

House Financial Services Committee members named

With the 117th Congress having been sworn in, Rep. Maxine Waters announced the Democratic members for the House Financial Services Committee, which has oversight on banking, insurance, real estate and securities sectors.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please