2 states to join N.Y. in tax suit

New Jersey and Connecticut are joining New York in planning to file a lawsuit to block the Republican-led federal tax overhaul, the Democratic governors of the three states announced Friday.

And California could join them.

Andrew Cuomo of New York, Dannel Malloy of Connecticut and Phil Murphy of New Jersey announced Friday that they’re talking to leaders of other states that stand to be hurt by the federal tax plan that’s expected to cost taxpayers in their states billions of dollars.

“We’re going to be working together to form a multistate coalition to challenge this in court,” said Cuomo, a potential 2020 White House contender.

Murphy said he expects the suit to be filed within weeks. It’s undecided where it will be filed, Malloy said.

The new tax code passed by Republicans in Congress and signed into law last month by President Trump caps a deduction for state and local taxes at $10,000. That deduction had been popular in high-tax, Democratic states such as New York, Connecticut and New Jersey — as well as California — where many homeowners now face big hikes in their federal tax bill.

The average deduction for state and local taxes taken by the 6.1 million California residents who took advantage of it in 2015 was $18,438, according to the Tax Policy Center. Only New York and Connecticut had a higher average deduction.