Area AG’s say the stimulus bill could threaten tax cuts
State Attorney Generals from Missouri, Kansas, Oklahoma, and Arkansas say a provision of the latest federal stimulus package could threaten a series of state tax cut bills.
Eric Schmitt, Derek Schmidt, Mike Hunter, and Leslie Rutledge joined 17 other state attorneys general in a letter to Treasury Secretary Janet Yellen seeking clarification on the issue.
They claim that if the intent was to deny states the ability to cut taxes in any manner whatsoever, the act would likely constitute the greatest attempted invasion of state sovereignty by Congress in the history of the Republic.
The troublesome language in the American Rescue Plan Act of 2021 prohibits states receiving a portion of the $1.9 trillion relief package from cutting taxes until 2024. If a state fails to comply, that state’s government would be required to repay the Department of the Treasury the amount equal to the tax cut.