State AGs say not so fast to relief bill provision

[Mik]

The provisions says states cannot use these funds to cut taxes. State AGs say it is unconstitutional, that the federal government has no power to dictate state tax policy. I would have to agree, even though I doubt many if any states would cut taxes in this environment. Still a good idea to draw the line between state and federal authority.

https://www.cincinnati.com/story/news/politics/state/2021/03/17/ohio-attorney-general-dave-yost-lawsuit-coronavirus-tax-cut-mandate/4734960001/

[jon-nyc]

Yep, that sounds right to me.

[Axtremus]

A very simple solution for the states that want to cut taxes is to do so without using the federal relief funds, or not take any federal relief fund at all.

Just think of it as a contract between the federal government and the states that says “for accepting these federal funds, you agree to X, Y, Z” and there would be no constitutional issue.

[Mik]

You miss the point, which is that the federal government does not have the right to dictate state tax policy. Workarounds do not resolve that issue.

[Axtremus]

You misunderstand the nature of the matter. The federal government does not dictate state tax policy in this case, merely giving the states choices — accept certain conditions that come with certain federal funds, or not accept any such fund and be free from any attendant conditions.

Like Title IX, Constitutionally the federal government cannot dictate states’ education policies, so Title IX gives them a choice — accept certain conditions that come with Title IX funds, or not accept any Title IX fund and be free from any attendant Title IX conditions.

[George K]

@mik said in State AGs say not so fast to relief bill provision:

You miss the point, which is that the federal government does not have the right to dictate state tax policy. Workarounds do not resolve that issue.

Yes, but the federal government can certainly strong-arm the states. Look at the speed limit wars late 1970s.

[Mik]

And that should not happen either. It is exactly why I oppose the federal government snaking its tentacles around the states.

[Mik]

@axtremus said in State AGs say not so fast to relief bill provision:

You misunderstand the nature of the matter. The federal government does not dictate state tax policy in this case, merely giving the states choices — accept certain conditions that come with certain federal funds, or not accept any such fund and be free from any attendant conditions.

Like Title IX, Constitutionally the federal government cannot dictate states’ education policies, so Title IX gives them a choice — accept certain conditions that come with Title IX funds, or not accept any Title IX fund and be free from any attendant Title IX conditions.

National relief should not come with that kind of strings attached.