The Ohio attorney general is taking the Biden administration to court over federal “American Rescue Plan.”
A.G. Dave Yost is suing the administration over rules in the stimulus bill that prevent states from using the billions of dollars in funding for tax cuts, Cleveland.com reported Wednesday.
Yost told Cleveland.com that the tax-cut ban violated states’ rights to set tax policy.
The U.S. Treasury Department on Wednesday, responding to concerns from state officials said that states can cut taxes without penalty under a new relief law — so long as they use their own funds to offset those cuts, the Associated Press reported.
Republican governors, lawmakers and attorneys general have expressed apprehension about a provision in the wide-ranging relief act signed by President Joe 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.
