GOP Asks Treasury If States That Take Relief Aid Can Cut Taxes

March 17, 2021, 10:11 PM

House GOP leaders are asking Treasury Secretary Janet Yellen to clarify if there are any permissible ways for states to cut taxes if they accept money from a more than $360 billion relief fund for state and local governments.

  • The lawmakers in the letter say they are “especially concerned” about a provision that could impose restrictions on states if they accept the money and then reduce state tax revenue through 2024
    • The lawmakers, which include Representative Steve Scalise and Kevin Brady, ask if state stimulus payments, tax relief for unemployment, or delays to gasoline tax increases would cause states ...

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