LITTLE ROCK (KATV) — Arkansas Attorney General Leslie Rutledge has announced that the state is among 13 suing over a section of President Joe Biden's COVID-19 relief package that bars states from using federal aid to offset tax cuts.
The provision in the relief act prohibits states from using $195 billion of federal aid “to either directly or indirectly offset a reduction” in net tax revenue, The Associated Press reported. The restriction could apply through 2024.
The lawsuit, filed Wednesday, argues that the federal government cannot force states to relinquish control of their taxing authority. It argues that the tax mandate provision could be used to claw back a share of Arkansas’ stimulus allotment.
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