Author Topic: 13 States Sue Biden Administration, Demand Ability To Cut Taxes  (Read 240 times)

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Online Right_in_Virginia

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13 States Sue Biden Administration, Demand Ability To Cut Taxes
Daily Caller, Apr 1, 2021

Thirteen states sued President Joe Biden’s administration over an American Rescue Plan provision prohibiting states from cutting taxes after accepting coronavirus relief funds.

The 13-state coalition argued that the provision included in the Democrats’ $1.9 trillion coronavirus relief package preventing states from cutting taxes if they accept relief from the federal government is unconstitutional. The coalition, led by Republican West Virginia Attorney General Patrick Morrisey, filed the federal lawsuit Wednesday evening in the U.S. District Court for the Northern District of Alabama.

“Never before has the federal government attempted such a complete takeover of state finances,” Morrisey said in a Wednesday statement. “We cannot stand for such overreach.”

“The Constitution envisions co-sovereign states, not a federal government that forces state legislatures to forfeit one of their core constitutional functions in exchange for a large check equal to approximately 25 percent of their annual respective general budgets,” Morrisey said in the statement.

The lawsuit characterized the tax provision as “one of the most egregious power grabs” in U.S. history. It said the federal government is not allowed to force states to relinquish control of their taxing authority under the Tenth Amendment.

The provision says states cannot use relief funds to offset tax revenue by reducing taxes. It specifically prevents states from offsetting tax revenue by “cutting rates or by giving rebates, deductions, credits, or otherwise.”

The vague wording of the provision buried more than 200 pages into the rescue plan creates a chilling effect for states, which seek to reduce tax burdens on their citizens, according to the lawsuit.

"Remember this day forever." -- President Donald J. Trump, January 6, 2021