Several lawsuits started a lawsuit against Joe Biden after he prevents tax cuts.
Fox 13 reported: “Attorneys general from 13 states, including Florida sued President Joe Biden’s administration on Wednesday over a rule in the federal stimulus that bars states from using relief money to offset tax cuts.
The filing in U.S. District Court in Alabama asks judges to strike down the provision in the wide-ranging relief act signed by Biden that prohibits states from using $195 billion of federal aid “to either directly or indirectly offset a reduction” in net tax revenue. The restriction could apply through 2024.”
The coalition of states is distressed, mindful that any tax cut may be considered a violation of this rule, and seen as an exploitation of relief funds.
They believe that interpretation of the law, could be a detriment to lawful activity, and prevent tax cuts by means unrelated to stimulus.
The coalition is made up of not only Republicans, but also Democrats.
Treasury Secretary Janet Yellen claimed “Nothing in the Act prevents States from enacting a broad variety of tax cuts,” she said “It simply provides that funding received under the Act may not be used to offset a reduction in net tax revenue resulting from certain changes in state law.”