The lawsuit was filed in the Southern District of New York by New York, Connecticut, New Jersey, and Maryland. The Republican-led tax bill caps the state and local tax deduction at $10,000, which was a popular deduction for residents of high-tax, Democrat-majority states. As a result of the change, many residents will see a substantial tax hike.
New Jersey Attorney General Gurbir Grewal said capping the tax break is a violation of the constitution because it "arbitrarily" limits the amount residents can deduct. Supporters of the tax bill claim, though, the new tax code will actually benefit more taxpayers than not.