1-3-18 5:07 PM EST | Email Article
By Mike Vilensky 

ALBANY -- New York Gov. Andrew Cuomo on Wednesday said he would challenge in court a new federal law that could hurt taxpayers in states with high state and local taxes.

"This federal government is the most hostile to New York in history," said Mr. Cuomo, a Democrat, in a 90-minute State of the State address before the Legislature at the state capital to open the annual six-month governing season. "It has shot an arrow at New York's economic heart."

The Democratic governor said his administration would work on a lawsuit to challenge the new law that imposes limits on the deductability of state and local taxes on federal tax returns. "It is the first federal double taxation in our nation's history, violative of states' rights and the principle of equal protection," he said.

He also said he would work with lawmakers, business owners and tax experts to explore wholesale changes to the state tax code in response to the bill. He proposed to "reduce reliance on our current income tax system" and adopt a statewide payroll tax.

The announcements were short on details, with the governor promising to offer more specifics in the coming weeks. Mr. Cuomo is running for re-election this year.

At the start of Republican President Donald Trump's tenure, Mr. Cuomo was more reluctant to attack his fellow New Yorker, but has recently seized on the tax issue. He signed an executive order in December that permits municipalities to allow tax filers to maintain the deductions on their 2017 tax return as long as they make their payments by Dec. 31, which spurred a surge of early filers.

"We will lead the resistance to this injustice and start our own repeal-and-replace effort," he said.

Write to Mike Vilensky at mike.vilensky@dowjones.com

 

(END) Dow Jones Newswires

January 03, 2018 17:07 ET (22:07 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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