A group of Republican attorneys general has threatened legal action against President Joe Biden’s administration over the US bailout, a historic $ 1.9 trillion stimulus package signed last week to address the economic impact of the Covid-19 pandemic to tackle. They argue that the stimulus package is unconstitutional and an example of government overreach. You have a particular problem with that $ 350 billion in measures that went to states and counties to offset the cost of dealing with the pandemic.
“Without a more sensible interpretation by your department, this provision would mean an unprecedented and unconstitutional encroachment on the separate sovereignty of states, with essentially half of the state’s tax books being usurped by the federal government,” the respondents said wrote in a letter to Treasury Secretary Janet Yellen.
“We ask you to confirm that the American Rescue Plan Act does not prohibit states from granting general tax breaks through the measures listed and discussed above and other similar measures, but the express use of the funds provided for in the law at most excludes direct tax cuts instead of the im Purposes established by law, ”they continue.
The group asks Yellen to confirm “that the American rescue plan law does not forbid states to generally grant tax breaks through the measures listed and discussed above and other similar measures, but that the express use of the funds provided under the law does not, at most, be for direct tax cuts and not for the purposes set out in law. “They warn that in the absence of confirmation,” they will “take appropriate additional measures to ensure that our states have the clarity and security necessary to safeguard the well-being of our citizens through the adoption and implementation of sound tax policies, including tax breaks, to ensure”.
The letter was signed by 21 attorneys general from states including Arizona, Alabama, Kentucky, Missouri, Virginia, and Wyoming.
Yellen has been an advocate of the American bailout and has defended sending $ 1,400 in stimulus payments to Americans who are struggling. especially those who are not receiving other targeted forms of support.
“That really helps ensure that there are pockets of misery out there that we know won’t be touched by more targeted things. That help is provided there too,” Yellen said in an interview last month. “I think we’ll be better off and that’s the right thing.”
Republicans have argued that the bill, which gives skilled Americans $ 1,400 of stimulus checks, expands unemployment benefits, and supports state and local governments, is too costly at $ 1.9 trillion. The Biden government has argued that such a large package is necessary to give the economy the boost it needs. Economic forecasters agree with the White House’s assessment. President Joe Biden signed the law last week.
Alan is a New York based writer, editor, and news junkie.