Attorneys General ask Treasury Secretary Yellen to clarify stimulus language infringing on states' rights

Attorney General Hunter Asks Treasury Secretary Yellen to Clarify Position on Federal Control of State Finances  OKLAHOMA CITY – Attorney General Mike Hunter today sent a letter to Treasury Secretary Janet Yellen asking her to clarify whether the last-minute provision added to the latest coronavirus stimulus package strips state legislatures of their authority to provide further economic relief to their citizens by reducing state tax rates, or risk paying back federal aid. The letter, signed by 21 attorneys general, says if the intent was to deny states the ability to cut taxes in any manner whatsoever, the act would likely constitute the greatest attempted invasion of state sovereignty by Congress in the history of the Republic. The troublesome language in the American Rescue Plan Act of 2021 prohibits states receiving a portion of the $1.9 trillion relief package from cutting taxes until 2024. If a state fails to comply, that state’s government would be required to repay the Department of the Treasury the amount equal to the tax cut. Attorney General Hunter said the Treasury Department has given little guidance on what the language means, and that it could discourage actions by states intended to help citizens. Read more » by Jamison Faught - March 17, 2021 at 09:00AM

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