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-Land of the Free
Federal Judge Overrules Biden Tax Restriction
2021-07-04
[Epoch Times] A federal judge issued a permanent injunction on Thursday to block the ambiguous tax mandate in President Joe Biden’s $1.9 trillion COVID-19 relief package.
I imagine the blue states thought it was a good idea, right Nancy?
U.S. District Judge Douglas R. Cole from the District Court for the Southern District of Ohio ruled that the tax mandate in the America Rescue Plan Act (ARPA)—which seems to tie the relief fund to the states’ authority to reduce tax—exceeds the Congress’s authority under the Spending Clause due to its ambiguity.

A stipulation in the $1.9 trillion sweeping relief package has caused considerable disputes between red states and the Biden administration.

"A State or territory shall not use the funds provided under this section … to either directly or indirectly offset a reduction in the net tax revenue of such State or territory resulting from a change in law, regulation, or administrative interpretation during the covered period that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase," the bill reads.
I suppose some states have a balanced budget and wouldn't know how to properly spend the windfall from Washington. Paid with their own taxes, no less.
Several red states argued that this paragraph may deprive their authorities to reduce tax after receiving the relief.
But the blue states would never even think of reducing taxes with an influx of revenue.
Posted by:Bobby

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