Republican attorney generals in more than a dozen states are threatening legal action against the Biden government over the $ 1.9 trillion coronavirus economic aid package, a move they say is unconstitutional.
In a seven-page letter sent to the Secretary of the Treasury Janet Yellen
Janet Louise YellenOn The Money: details on the timing of, 400 stimulus payments Yellen provides signature for paper money Huge struggle is approaching to raise taxes MORE on Tuesday, republican officials argue that the aid package, specifically the $ 350 billion included to help states and counties offset the cost of dealing with the pandemic, limits these governments’ ability to reduce taxes for citizens , if they wish.
“In the absence of a more sensible interpretation of his department, this provision would amount to an unprecedented and unconstitutional intrusion into the separate sovereignty of states through the federal usurpation of essentially half of the state’s fiscal books,” they wrote to Yellen. “We ask that you confirm that the American Rescue Plan Act does not prohibit States from providing tax exemptions through the types of measures listed and discussed above and other similar measures, but at most it prevents the express use of the funds provided for in the Act for direct cuts of taxes, and not 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 locations that receive federal money for coronavirus relief.
“Therefore, if a state cuts taxes without restoring that revenue in any other way, the state must return to federal government pandemic relief funds up to the amount of lost revenue,” said the official, adding that the account “does not say that states cannot cut taxes “but instead” simply instruct them not to use that money to make up for lost net revenues if the state decides to cut taxes. “
“Federal purchasing power has clear limitations,” said West Virginia Attorney General Patrick Morrisey (R) on Tuesday. “Congress cannot micromanage a state’s fiscal policies in violation of anti-commander principles, nor can it coerce a state to lose one of its central constitutional functions in exchange for a large federal government check. This ‘economic dredging’ of the states cannot withstand constitutional scrutiny. “
Republicans on Capitol Hill strongly criticized the bill for its size and including what they called Democratic pet projects and funding for non-coronavirus initiatives.
Democrats, including those in the White House, argued that a comprehensive and comprehensive package was needed to properly deal with the economic devastation that American workers were hit during the pandemic.
This week, President biden
Joe BidenBiden and Congress must take bold steps to avoid violent extremism The Hill’s Morning Report – Presented by Facebook – Biden faces the Republican Party’s immigration and obstruction offensive. Democrats defend border crisis MORE, first lady Jill Biden
Morning report by Jill BidenThe Hill – Presented by Facebook – Biden faces Republican Party immigration and obstruction offensive Biden launches advertising campaign for relief bill The Hill’s Morning Report – Presented by Facebook – Split screen: Biden sells stimulus; GOP highlights the border 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 government’s political agenda.
“It’s one thing to pass a piece of historic legislation like the American Rescue Plan, and quite another to implement it,” said Biden on Monday. “The devil is in the details.”