Thirteen states are suing to challenge the tax provision in the Democrats COVID relief law.
They claim it infringes on the rights of states to lower tax rates.
Breaking: Thirteen states sue to challenge tax provision in Democratic coronavirus relief law | Just The News https://t.co/rq2ayfRpT1
— John Solomon (@jsolomonReports) April 1, 2021
A group of 13 states have lodged a lawsuit challenging a section of the recently approved $1.9 trillion coronavirus relief package pertaining to states’ rights to reduce taxes.
The suit, which names the U.S. Treasury Department, Treasury Secretary Janet Yellen and Treasury Department acting Inspector General Richard Delmar as defendants, takes issue with a provision of the legislation which says states that receive federal relief funds cannot use those funds to “directly or indirectly offset a reduction in the net tax revenue” in the state.
“The Federal Tax Mandate thus usurps the ability of the Plaintiff States’ citizens to reduce their tax burdens and creates an impermissible chilling effect on their elected officials’ willingness to do the same—based on a threat that the federal government may claw back some or all of the States’ share of critical ARPA funding,” part of the suit declares.
The states are:
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