A group of 13 states is suing President Joe Biden’s administration for the American Rescue Plan's tax provision. The said policy prohibited states from cutting taxes if they received relief funds.
Thirteen states formed a coalition led by West Virginia’s Attorney General Patrick Morrisey. The coalition then pursued legal action against the Biden administration over the rescue plan's “unconstitutional” tax provision. The group filed a federal lawsuit against the administration on Wednesday evening at the US District Court for the Northern District of Alabama.
In a statement, Morrisey said the federal government has never attempted a “complete take over of state finances” before.
His statement also noted that the Constitution envisioned the states to be co-sovereign. He then said it did not call for a federal government that makes state lawmaking bodies give up one of their core functions in exchange for funding that’s just around a quarter of their annual general budgets.
According to the lawsuit, the said tax provision is one of the country's “most egregious power grabs” in history. It also said that the Tenth Amendment prevents the federal government from overreaching in its authority, which is what the Biden Administration did with this provision.
In mid-March, 21 states threatened to pursue legal action against the president if he doesn’t change the policy.
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