As Republicans in Congress move forward with a plan to overhaul the nation's taxes, Governor Andrew Cuomo is raising the possibility of a court challenge to the final agreement. 

"This is double taxation. I'm not even sure it's legal. We're going to find out whether or not it is," Cuomo said.

Both the House version approved earlier in November and the U.S. Senate bill that passed late last week would end the deduction of state and local taxes. Cuomo on Monday held a conference call with fellow Democratic Governor Jerry Brown of California and New Jersey Governor-elect Phil Murphy to rail against the proposal once again that could impact their high-tax states.

"Ultimately, democracy works, and a congressman who votes for this -- there's no going home, in my opinion," Cuomo said.

But even as Cuomo says voters will take out their frustrations at the ballot box, Albany faces a challenging fiscal climate in the new year on top of the uncertainty over taxes in Washington.

"It will put us in a bad economic climate. We're already a couple billion dollars down," said Senator Neil Breslin (D - Bethlehem). "I see that going in the wrong direction."

Cuomo and state lawmakers next year will have to close a budget deficit estimated to be as high as $4.6 billion and growing -- forcing difficult decisions in a re-election year.

"Difficult? Extremely difficult. I think it's a bad political climate," Breslin said. "We go and have a $5 billion plus deficit -- I've seen in the past that the ones that are hurt the most are the ones who can afford it the least."

And as Republicans in Congress talk about a tax cut, some lawmakers, like Breslin, aren't ruling out a tax increase to help close the budget deficit.

"It's not on the table yet, but I can see the possibility of that discussion," he said.

The budget is expected to pass by the end of March. Cuomo will unveil his eighth budget proposal of his tenure as governor next month.