California Governor Jerry Brown says he's joining forces with the governor of New York and the governor-elect of New Jersey to fight the proposed tax plan being considered in Congress.
He says the bill unfairly punishes states that did not support President Donald Trump during the last election, taking an estimated $40 billion out of the California economy.
Under the plan, property and state income taxes would no longer be deducted as they are now, hurting residents in high tax states.
Brown says this Republican-backed bill would attack the nation's economic engine.
"It's really stupid and they will regret it," Brown says, "and we'll do everything we can to convince our Republican representatives that the right thing for America is to defeat this bill."
New York Governor Andrew Cuomo says it's political retaliation through the tax code.
He says California and New York pay more into the federal government than they receive in services, and this bill will increase the inequity.
The governors say they'll consider legal action to block the changes, should the bill get signed into law.
House Majority Leader, Republican Kevin McCarthy of Bakersfield, says the tax cuts will make America more competitive by giving companies financial incentives to do business here.
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