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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsJudge blocks tax cut rule in American Rescue Plan
MONTGOMERY, Ala. (AP) A federal judge has blocked the U.S. Treasury from enforcing a provision of the American Rescue Plan Act that prohibited states from using the pandemic relief funds to offset new tax cuts.
U.S. District Judge L. Scott Coogler ruled Monday in Alabama that Congress exceeded its power in putting the so-called tax mandate on states. He entered a final judgement in favor of 13 states that had filed a lawsuit and instructed the Treasury Department not to enforce the provision. The judge left the rest of the law in place.
The American Rescue Plan steered $195 billion in flexible relief funds to states but specified that states could not use it as a means to cut taxes by using the federal relief dollars to offset the revenue reduction.
The judge described the tax-cut restrictions as a federal invasion of State sovereignty" that was unconstitutionally ambiguous" leaving states guessing as to whether their tax cuts would trigger a repayment of federal funds.
https://www.msn.com/en-us/news/us/judge-blocks-tax-cut-rule-in-american-rescue-plan/ar-AAQMs7y
Federal money has nearly always had strings attached.
PortTack
(32,794 posts)Response to PortTack (Reply #1)
Chin music This message was self-deleted by its author.
Bev54
(10,072 posts)don't like it, then don't take the money. They should do like PM Trudeau in Canada did years ago when he agreed to more health funds for the provinces but the $ had to go towards mental health and drug rehabilitation, not to administration or other places. The provinces tried to get together and say no but Trudeau negotiated with each province separately and eventually they all agreed.
Response to Bev54 (Reply #2)
Chin music This message was self-deleted by its author.
PortTack
(32,794 posts)Freethinker65
(10,055 posts)No way in hell does it go into a State's general slush fund. Blue states are tired of subsidizing red states but agreed to the plan because it was to help with costs related to the pandemic. Democrats did not want individuals in any state to suffer needlessly.