Judge blocks tax cut rule in American Rescue Plan

[Polybius]

Source: MSN

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.

Read more: https://www.msn.com/en-us/news/us/judge-blocks-tax-cut-rule-in-american-rescue-plan/ar-AAQMs7y

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W. Bush judge.

[The Magistrate]

1. A Bullshit Political Farce Of A Decision, Sir

[Drunken Irishman]

2. I'm sure they can't do this: but then don't give them the money.

[stopdiggin]

3. somehow don't think this one is going to stand up

There is precedent galore for the Feds attaching conditions and strings to funding. The 'remedy' here is quite simple (and completely in keeping with previous disbursements) - states always have the option of turning down the funds. Whalla! Problem solved!

[DENVERPOPS]

4. I would guess that Alabama

is one of the many states that takes far more from the Federal Government than they send to Washington.

And this is purely political. They can cut taxes on the rich in Alabama even more and use the Pandemic Money to replace the lost tax cut revenue. And screw the middle and lower tax groups out of any pandemic help and blame it on Biden.

Except for Emergencies, The Feds should not send any more money to a state than it submits.............

[hibbing]

5. cut taxes....for the ruling class

The article left out that little part.

Peace

[Quanto Magnus]

6. So don't give those states the money

if they're going to pull shenanigans...

[Deminpenn]

7. ARP money doesn't last forever

States that are using the money as a one-time gimick to hide deficit spending shortfalls are just screwing themselves. Unlike the federal government, state laws require balanced budgets.