Republican attorneys general in more than a dozen states are threatening legal action against the Biden administration for the recently signed $ 1.9 trillion coronavirus financial aid package, a move they say is unconstitutional.
In a seven-page letter sent to the Secretary of the Treasury Janet Yellen
Janet Louise Yellen: On The Money: Details on the Schedule of the 400 Stimulus Payments That Yellen Provides Paper Currency Signature The Huge Struggle Is Coming to Raise Taxes MORE on Tuesday, Republican officials argue that the relief package, specifically the $ 350 billion included to help states and counties offset the cost of dealing with the pandemic, limits the ability of these governments to reduce taxes on citizens. if they wish.
“In the absence of a more sensible interpretation of your department, this provision would amount to an unprecedented and unconstitutional intrusion into the separate sovereignty of states through federal usurpation of basically half of the state’s tax books,” they wrote in Yellen . “We ask that you confirm that the American Rescue Plan Act does not prohibit states from generally providing tax breaks through the types of measures listed and discussed above and other similar measures, but at most prevents the express use of funds provided by law for to direct tax reductions rather than for the purposes specified by law. ”
A White House official told the Washington Post on Tuesday that Congress did the right thing by stipulating certain conditions for localities receiving federal money to relieve coronavirus.
“Therefore, if a state reduces taxes without replacing that revenue in another way, the state will have to return to the pandemic relief funds of the federal government up to the amount of lost revenue,” the official said. , who added that the bill “does not” say that states cannot cut taxes at all, “but” simply tells them not to use that money to make up for lost net income if the state decides cut taxes “.
“Federal spending power has clear limitations,” West Virginia Attorney General Patrick Morrisey (R) said Tuesday. “Congress cannot micromanage a state’s fiscal policies that violate anti-command principles or force a state to lose one of its basic constitutional functions in exchange for a large federal government check. This” economic drone “of the states cannot withstand constitutional scrutiny. “
Capitol Hill Republicans strongly criticized the bill for its size and included what they called Democratic pet projects and funding for non-coronavirus-related initiatives.
Democrats, including those in the White House, have argued that a complete and comprehensive package was needed to adequately address the economic devastation suffered by American workers during the pandemic.
This week, President Biden
Joe BidenBiden and Congress Must Take Bold Steps to Prevent Violent Extremism The Hill’s Morning Report – Presented by Facebook – Biden faces offensive GOP immigration and filibusters Democrats defend border crisis, first lady Jill Biden
Jill Biden: The Hill’s Morning Report – Presented by Facebook – Biden faces GOP immigration and filibuster offensive. Biden starts advertising to get a relief bill. The Hill’s Morning Report – Presented by Facebook. GOP highlights the edge MORE and Vice President Harris have been touring the country promoting the American Rescue Plan and discussing a possible future tax hike to pay for the administration’s political agenda.
“It’s one thing to pass historic legislation like the American Rescue Plan, and it’s another to enforce it,” Biden said Monday. “The devil is in the details.”