Attorneys general from 13 states, including Florida, West Virginia, and Arkansas, filed suit on Wednesday in an Alabama District Court against Treasury for its restrictions blocking state tax cuts using latest pandemic relief aid.
The complaint, filed in the U.S. District Court for the Northern District of Alabama’s Western Division, argues a provision in the $1.9 trillion American Rescue Plan Act (Public Law 117-2) passed last month “impermissibly seizes taxing authority from the States” by not allowing states to use funds to reduce taxes.
States need to be protected “from one of the most egregious power grabs ...
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