Republican states are trying to siphon COVID relief aid to cut taxes -- and it may be illegal

[Yo_Mama_Been_Loggin]

Republican leaders in nearly two dozen U.S. states are attempting—potentially in violation of federal law—to use coronavirus relief funds approved by Congress last year to finance tax cuts instead of devoting the money to combating the ongoing pandemic and its economic consequences.

The Washington Post reported Tuesday that GOP officials are working to subvert a provision in the American Rescue Plan (ARP) that bars states from using money from a $350 billion Covid-19 aid program "to either directly or indirectly offset a reduction in the net tax revenue."

Last March, just days after President Joe Biden signed the ARP into law, 13 Republican state attorneys general sued the Biden administration over that provision, decrying it as an "unconstitutional assault on state sovereignty." In the nearly year and a half since the GOP officials filed suit, numerous Republican states have moved to slash taxes—often in ways that primarily benefit rich households and profitable businesses.

Whitney Tucker and Coty Novak of the Center on Budget and Policy Priorities noted earlier this year that Iowa—one of the states that joined the legal action against the Biden administration—replaced its "graduated personal income tax with a flat 3.9% tax while retaining credits and deductions that would allow wealthy Iowans to pay even less."

https://www.msn.com/en-us/news/politics/republican-states-are-trying-to-siphon-covid-relief-aid-to-cut-taxes-and-it-may-be-illegal/ar-AAZe4PZ

Republican states are trying to use federal covid aid to cut taxes

As gas prices climbed toward record highs this May, Florida Gov. Ron DeSantis (R) secured a pause on the state’s fuel taxes — a $200 million plan he helped pay for with a pot of federal funds awarded earlier in the pandemic.

The policy was intended to save money for local drivers and state coffers alike. But it also appeared to mark a potential violation of federal law — and the latest skirmish in an escalating clash between GOP officials and the White House over how states can use generous federal stimulus dollars.

More than a year after Congress approved a $1.9 trillion coronavirus relief package, Republicans in nearly two dozen states have ratcheted up efforts to tap some of those funds for an unrelated purpose: paying for tax cuts. The moves have threatened to siphon off aid that might otherwise help states fight the pandemic, shore up their local economies or prepare for a potential recession.

The intensifying Republican campaign targets one of the signature programs Democrats approved as part of President Biden’s American Rescue Plan last year. At the urging of the nation’s mayors and governors, Congress delivered what largely amounted to a blank check for every city and state to bolster their budgets.

https://www.washingtonpost.com/us-policy/2022/07/05/republicans-tax-cuts-stimulus/

[SoCalDavidS]

1. Illegal?

LOL!

[MichMan]

2. Didn't President Biden just ask the states to waive their gas taxes?

"As gas prices climbed toward record highs this May, Florida Gov. Ron DeSantis (R) secured a pause on the state’s fuel taxes — a $200 million plan he helped pay for with a pot of federal funds awarded earlier in the pandemic."

[LetMyPeopleVote]

3. Republican states are trying to use federal covid aid to cut taxes

If these states do not want to use the money to fight COVID, give the money back to the federal govt so we can get more vaccines

Link to tweet

https://www.washingtonpost.com/us-policy/2022/07/05/republicans-tax-cuts-stimulus/?utm_source=twitter&utm_campaign=wp_main&utm_medium=social

As gas prices climbed toward record highs this May, Florida Gov. Ron DeSantis (R) secured a pause on the state’s fuel taxes — a $200 million plan he helped pay for with a pot of federal funds awarded earlier in the pandemic.

The policy was intended to save money for local drivers and state coffers alike. But it also appeared to mark a potential violation of federal law — and the latest skirmish in an escalating clash between GOP officials and the White House over how states can use generous federal stimulus dollars......

Since then, however, GOP leaders have challenged the tax cut prohibition in federal courtrooms and state capitals. Attorneys general in 21 states have fought to overturn the Biden administration’s policy, federal court filings show, backed at times by powerful groups like the U.S. Chamber of Commerce, whose corporate members have lobbied conservative-leaning states to reduce their tax bills. In nearly every case, these legal efforts have prevailed, hamstringing the Treasury Department while opening the door for states to pursue their own tax cuts.

In Florida, the legal wrangling has enabled DeSantis and his political allies to leverage about $200 million in federal coronavirus aid to help pay for a planned suspension of the gas tax this October, according to state budget documents. Lawmakers essentially adopted a law that deposited its allotment under the stimulus program into the state’s general fund, then appropriated the money for the tax holiday, records show.