Maryland Attorney General Brian Frosh has announced his intention to join a multi-state lawsuit resisting the recently adopted limitation on federal deductibility of state and local taxes.
From the AG’s press release:
The $10,000 cap on the state and local tax deduction (SALT) disproportionately harms Maryland residents and disrupts the longstanding balance of taxing power between the states and the federal government. Maryland relies on state property and income taxes to fund a variety of critical services, including education, health care, public safety, and other priorities. Over half a million Marylanders will lose $6.5 billion in SALT deductions – an average of $11,800 per taxpayer. These changes will also have harmful collateral consequences for the State and its
residents. With the decreased value of the property tax deduction, for example, many Marylanders will see decreases in the value of their homes. Maryland residents will have an incentive to move elsewhere, and attracting young families and skilled workers to the State will become more difficult, putting Maryland at a competitive disadvantage.