Republican attorneys general in more than a dozen states are threatening legal action against the Biden government over the recently signed $ 1.9 trillion economic aid package for the coronavirus, a measure they say is unconstitutional.
In a seven-page letter to the Secretary of the Treasury Janet Yellen
Janet Louise Yellen On the money: details on the timing of the .400 stimulus payments Yellen gives signature for paper currency Massive battle looms over raising taxes MORE On Tuesday, Republican officials argue that the aid package, specifically the $ 350 billion included in it to help states and provinces offset the costs of dealing with the pandemic, limits those governments’ ability to lower taxes on citizens if they want that.
“Without a more sensible interpretation of your department, this provision would amount to an unprecedented and unconstitutional breach of individual states’ sovereignty by federal usurpation of essentially half of the state’s fiscal ledgers,” they wrote to Yellen. “We ask you to confirm that the American Rescue Plan Act does not prohibit states from generally granting tax relief through the types of measures listed and discussed above, and other similar measures, but at most excludes the express use of the funds. provided under law for direct tax cuts rather than for the purposes specified in law. ”
A White House official told The Washington Post on Tuesday that Congress has done the right thing by placing certain conditions on places that receive federal money for coronavirus relief.
“So if a state cuts taxes without replacing that income in some other way, then the state must pay back the amount of the lost income to the federal government,” the official said. say states cannot cut taxes at all “but instead” simply directs them not to use that money to make up for lost net income if the state chooses to cut taxes. “
“Federal purchasing power has definite limitations,” West Virginia Attorney General Patrick Morrisey (R) said Tuesday. “Congress must not micromanage a state’s fiscal policies against the principles of anti-command, nor force a state to relinquish any of its basic constitutional functions in exchange for a large check from the federal government. Such “economic dragging” of states cannot withstand constitutional control. “
Republicans on Capitol Hill outright criticized the bill for its magnitude and including what they called Democratic pet projects and funding for initiatives unrelated to the coronavirus.
Democrats, including those in the White House, have argued that a sweeping and comprehensive package was needed to adequately address the economic devastation that affected American workers during the pandemic.
This week, President Biden
Joe BidenBiden and Congress Must Take Bold Steps to Prevent Violent Extremism The Hill’s Morning Report – Presented by Facebook – Biden Faces GOP Immigration and Filibuster Offensive Democrats Play Border Crisis Defense MORE, first lady Jill Biden
Jill Biden The Hill’s Morning Report – Presented by Facebook – Biden Faces GOP Immigration and Filibuster Offensive Biden Starts Publicity Blitz for Emergency Bills The Hill’s Morning Report – Presented by Facebook – Split screen: Biden sells incentives; GOP emphasizes boundary MORE and Vice President Harris have toured the country to praise the US bailout and discuss a possible future tax hike to pay for the government’s policy agenda.
“It’s one thing to pass a historic piece of legislation, like the US bailout plan, and it’s quite another to implement it,” Biden said Monday. “The devil is in the details.”