COLOMBIA – SC Attorney General Alan Wilson is among 21 Republican Attorney Generals who threaten to sue the Biden government over its $ 1.9 trillion coronavirus relief package, saying it could prevent states to institute any tax cuts or rebates, even if they do not involve the latest federal cash infusion.
States should not use stimulus money as part of tax reduction efforts, but some state attorney generals think the language of the law could halt any tax reduction plans, including deductions and credits.
In a seven-page letter sent on March 16 to U.S. Treasury Secretary Janet Yellen, Wilson joined 20 colleagues in advocating for language changes in sections of the bill that provide $ 350 billion to help states cover pandemic-related costs that they think restrict legislators. ability to develop tax reduction plans.
“This federal usurpation of state tax policy would represent the greatest attempt by Congress to invade state sovereignty in the history of our Republic,” says the letter, calling the provision unconstitutional.
Then, it presents proposals that are being processed in seven state legislatures aimed at relieving the tax burden of its residents. Although South Carolina is not among them, Wilson fears that the widely drafted sections of Biden’s “American Rescue Plan Act” could hurt lawmakers in the future.
Wilson wants Treasury officials to adopt a “more sensible interpretation” that gives states the flexibility to use their money in ways that lawmakers see fit.
The letter grants Biden government officials until March 23 to clarify how these billions can be used before “appropriate additional action” is taken.
In February, Governor Henry McMaster joined 22 other governors who opposed Biden’s stimulus project, blaming the way he sent federal funds to states. The same account is sending checks for $ 1,400 to some taxpayers.
“Unlike all previous federal financing packages, the new stimulus proposal allocates aid based on a state’s unemployed population, rather than its real population, which punishes states that have taken a measured approach to the pandemic and have entered the crisis with healthy state budgets and strong economies ”. said the letter from the governors.
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