Share
News

13 States Sue Biden Admin Over 'Egregious' Power Grab Buried in COVID Relief Package

Share

Thirteen states sued President Joe Biden’s administration over an American Rescue Plan provision prohibiting states from cutting taxes after accepting coronavirus relief funds.

The 13-state coalition argued the provision included in the Democrats’ $1.9 trillion coronavirus relief package preventing states from cutting taxes if they accept relief from the federal government is unconstitutional.

The coalition, led by Republican West Virginia Attorney General Patrick Morrisey, filed the federal lawsuit Wednesday evening in the U.S. District Court for the Northern District of Alabama.

“Never before has the federal government attempted such a complete takeover of state finances. We cannot stand for such overreach,” Morrisey said in a Wednesday statement.

“The Constitution envisions co-sovereign states, not a federal government that forces state legislatures to forfeit one of their core constitutional functions in exchange for a large check equal to approximately 25 percent of their annual respective general budgets.”

Trending:
FAA Makes Massive Mistake, Accidentally Exposes 704 Previously Unknown Epstein Flights

The lawsuit characterized the tax provision as “one of the most egregious power grabs” in U.S. history. It said the federal government is not allowed to force states to relinquish control of their taxing authority under the 10th Amendment.

The provision says states cannot use relief funds to offset tax revenue by reducing taxes. It specifically prevents states from offsetting tax revenue by “cutting rates or by giving rebates, deductions, credits, or otherwise.”

The vague wording of the provision buried more than 200 pages into the rescue plan creates a chilling effect for states, which seek to reduce tax burdens on their citizens, according to the lawsuit.

West Virginia, Alabama, Alaska, Arkansas, Florida, Iowa, Kansas, Montana, New Hampshire, Oklahoma, South Carolina, South Dakota and Utah are listed as plaintiffs. Treasury Secretary Janet Yellen and Treasury Department Inspector General Richard Delmar are the listed defendants.

Do you think these states are right to sue Biden?

In an earlier letter to Yellen on March 16, 21 states threatened legal action over the provision. The attorneys general demanded clarity on Biden’s position regarding the policy.

“It is well established that Congress may place such reasonable conditions on how States may use federal funding,” Yellen wrote in response to the letter.

“If States lower certain taxes but do not use funds under the Act to offset those cuts — for example, by replacing the lost revenue through other means — the limitation in the Act is not implicated,” Yellen said. But Yellen failed to clarify the limits to the vague provision in her response, the Montana attorney general’s office said in a statement.

The announcement is the latest lawsuit filed by a state against the Biden administration. A coalition of 21 states sued Biden on March 17, arguing the president overstepped his constitutional authority when he revoked the federal permit for the Keystone XL Pipeline on his first day in office.

Thirteen states sued Biden on March 24 over his administration’s ban on new federal oil and gas leasing.

Related:
Actor Alleges He Was Fired Over His Christian Faith, Files Lawsuit Against Producer

On March 8, 12 states sued the administration over its climate policies. One day later, Arizona and Montana sued the administration over its immigration policies.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

A version of this article appeared on The Daily Caller News Foundation website.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
, , , , , , , , , , , ,
Share
Founded by Tucker Carlson, a 25-year veteran of print and broadcast media, and Neil Patel, former chief policy adviser to Vice President Dick Cheney, The Daily Caller News Foundation is a 501(c)(3) non-profit providing original investigative reporting from a team of professional reporters that operates for the public benefit.




Conversation

The Western Journal is pleased to bring back comments to our articles! Due to threatened de-monetization by Big Tech, we had temporarily removed comments, but we have now implemented a solution to bring back the conversation that Big Tech doesn't want you to have. If you have any problems using the new commenting platform, please contact customer support at commenting-help@insticator.com. Welcome back!