Officials from 13 states join forces to sue Biden admin over tax-related stipulations in COVID relief plan

President Joe Biden has faced widespread criticism for the scope and cost of a COVID-19 relief package passed through Congress and signed into law without GOP support.

Now, the Washington Examiner reports that a group representing 13 states is taking the Biden administration to court over a key portion of the expansive bill.

“Complete takeover”

Specifically, the complainants object to a provision that limits their ability to provide tax relief as a condition of receiving some of the $350 billion allocated to state and local governments. As the court document notes, the relief bill stipulates that funds may not be used to offset the cost of taxes either “directly or indirectly.”

According to the Washington Examiner, the suit was filed in the U.S. District Court for the Northern District of Alabama, with that state’s Attorney General Steve Marshall named as one of the plaintiffs.

Joining him are the attorneys general from West Virginia and Arkansas, as well as various officials from 10 other states.

West Virginia Attorney General Patrick Morrisey issued a statement on the matter, asserting: “Never before has the federal government attempted such a complete takeover of state finances. We cannot stand for such overreach.”

He went on to argue that the nation’s founders set the stage for “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.”

“Last-minute conditions”

The attorneys general also sent a letter to Treasury Secretary Janet Yellen last month to send the message that the provisions of Biden’s relief bill “would amount to an unprecedented and unconstitutional intrusion on the separate sovereignty of the States through federal usurpation of essentially one half of the State’s fiscal ledgers (i.e., the revenue half).”

States named as plaintiffs in the case also complained in the letter that “such federal usurpation of state tax policy would represent the greatest attempted invasion of state sovereignty by Congress in the history of our Republic.”

For her part, Yellen reportedly told the Senate Banking Committee on March 24 that the matter was one of the “thorny questions that we have to work through.”

She said that lawmakers and officials “will have to define what it means to use money from this act as an offset for tax cuts, and given the fungibility of money, it’s a hard question to answer,” vowing that “we will do our best to offer guidance on it.”

State officials in Ohio and Arizona have filed their own lawsuit regarding the tax-related issue, with Ohio Attorney General Dave Yost proclaiming that “slipping last-minute conditions into a plan meant to help people” is one reason “why people don’t trust government.”

Share on facebook
Share To Facebook

Welcome to our comments section. We want to hear from you!

Any comments with profanity, advocacy of violence, harassment, personally identifiable information or other violations will be removed. If you feel your comment has been removed in error please contact us!

6 Responses

  1. It is one more step toward the changing of this country from Land of the Free to a personal bank account for the people in DC who think and want to make this country a communist country. I don’t think England does that to the Queens lands, i.e Canada, Australia etc.
    God has blessed America to be a Land of the Free and then along comes the Devil’s children who want to take away from us what was fought and died for. I admire the governors that stand by their people and tell the president and Congress that we are not going to take it anymore. And I pray the Judges will stand with the states and the law and not give in to Biden and Pelosi who I am sure is behind this push to take from the states because Biden does not have the mental ability to do this on his own. GOD BLESS AMERICA.

  2. Pelosi, Biden, Harris are corrupt, lying, self-centered, imbasols. They must be impeached asap. They are destroying our country. What are other countries thinking about our once great country now being destroyed.

  3. You Might Like
  4. Not even 90 days into his presidency, and the old man is already in trouble. Imagine what the next 3.75 years is going to be like.

  5. No American citizen should ever trust the democratic government that we have now. The democrats lie to the American people all of the time. Like I have stated before the democrats really need to be put totally out of our government for good.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts