Maryland Attorney General Brian Frosh revealed on Thursday that he plans to sue President Donald Trump over the recently passed Tax Cuts and Jobs Act.
Frosh plans to join officials from New York, New Jersey, and Connecticut to sue the federal government over the tax bill’s reduction on the state and local tax deduction (SALT). The state officials believe that the cap on the SALT deduction is unconstitutional.
Frosh, a Democrat, said in a press release, “By eliminating the SALT deductions, Trump’s tax bill will jack up taxes for more than half a million Marylanders,” Frosh, a Democrat, said in a news release. “It is an attack on state sovereignty and an attempt to cripple our ability to educate our kids, protect the Chesapeake Bay, and build the infrastructure that Maryland needs to be competitive in the world economy.”
Analysts believe that the legal challenge to the Tax Cuts and Jobs Act will likely fail, pundits argue that the federal government has broad authority taxes on income.
Meanwhile, the economy continues to expand under President Trump.
The economy added 200,000 jobs in January; economists expected the economy to grow by 180,000 last month. The unemployment remains at 4.1 percent according to the Labor Department. Average hourly wages jumped by 2.9 percent when compared to last January; this amounts to the largest increase since 2009.
UPS, Cigna, Hostess, and Lowe’s announced on Thursday that they will give their workers bonuses, increase investment, and give their workers free snacks due to tax reform.
Hostess Brands, the maker of Twinkies, announced that they will offer their employees a sweet deal: employee bonuses and free Hostess snacks for one year.
Hostess will give more than 1,000 employees a bonus of $1,250, which includes $750 in cash and a $500 contribution to their 401(k). The food giant will give their employees a multipack “product of the week” for free; local Hostess bakeries will choose which snacks to provide their employees each week.
C. Dean Metropoulos, the Hostess Brands executive chairman, said in a letter to employees:
The recent tax reform changes have given us the opportunity to review our benefit and compensation structure with an eye toward further investing in our workforce — our extraordinary team of employees who have and continue to help make Hostess so successful. As we have done in the past, the company’s management and board take great pleasure in sharing the company’s success with our employees.
UPS Chairman and Chief Executive Officer David Abney said in a statement, “This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” said David Abney, UPS chairman and chief executive. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”