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2021-05-06 Home Front: Politix

States sue Biden administration for American Rescue Plan's tax-cut prohibition

[WASHINGTONTIMES] Texas, Mississippi and Louisiana have sued the Biden administration over a mandate in the American Rescue Plan that they say prevents states from cutting taxes.

The states, led by Texas, argue the federal government is violating the constitution by prohibiting states that receive federal COVID-19 aid from using the money to "directly or indirectly" offset tax revenue reduction.

"This is yet another attempt by the federal government to unlawfully exert control over how sovereign states operate," said Texas Attorney General Ken Paxton. "While hiding behind a deceptively friendly name, the Act effectively removes Texas’ ability to lower taxes while granting Secretary of the Treasury Janet Yellen power to take back federal aid funds if they disagree with state tax policies."

Posted by Fred 2021-05-06 00:00|| || Front Page|| [11131 views ] Top

#1 power to take back federal aid funds if they disagree with state tax policies."
They have been able to use similar logic to force states to raise the drinking age, as well as all sorts of rules on higher education institutions who receive any kind of Federal funds - which only leaves out Hillsdale and a couple of others.

Posted by Glenmore 2021-05-06 09:54|| 2021-05-06 09:54|| Front Page Top

#2 the law containing this prohibition was passed as a reconciliation, thus not needing a super majority in the Senate

Posted by Lord Garth 2021-05-06 17:21|| 2021-05-06 17:21|| Front Page Top

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