Posted in International

Communist Viral Relief Bill Blocks State Tax Cuts 13 U.S. States Sue Biden Administration

 2021年4月4日

U.S. Treasury Secretary Janet Yellen was sued in court by 13 states on March 31.

A cross-party coalition of 13 U.S. states recently took the Biden administration to court, accusing it of interfering with state fiscal authority by prohibiting states from using the funds to pay for tax breaks under Biden’s Communist Party of China Viral Relief Act.

The “federal tax authority” provision of the Biden administration’s $1.9 trillion Communist virus relief bill, introduced in March of this year, prohibits states from using the relief money to make up for reductions in tax revenue caused by policies during the epidemic, or the federal government could withdraw the bailout money.

A cross-party coalition of West Georgia, Alabama, Arkansas, Alaska, Florida, Iowa, Kansas, Montana, New Hampshire, Oklahoma, South Carolina, South Dakota, and Utah therefore took the Biden administration to the District Court for the Northern District of Alabama. The defendants in the case are U.S. Treasury Secretary Janet Yellen and U.S. Treasury Department Attorney General Richard Delmar.

The plaintiffs allege that this provision violates the Tenth Amendment to the U.S. Constitution and is the most blatant infringement of state executive power by the federal government in the history of the United States. The plaintiffs argue that the Act forces U.S. states to relinquish their right to control their own state tax systems. The lawsuit also condemns the federal government for violating the conditional spending doctrine and the anti-commandeering doctrine.

West Georgia Attorney General Patrick Morrisey said the provision prevents states from reducing taxes for their own people for three years and steals the ability of states to reduce their tax burden.

This is not the first time that state capitals have sued the Biden administration: on March 17, 21 states sued Biden over his executive order to cancel the Keystone pipeline project, and on March 24, 14 states sued the Biden administration over its moratorium on new oil and gas exploration on federal lands.