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Paxton Joins Multistate Amicus Brief Opposing Federal Control of State Tax Policy

(from Office of TX Attorney General)

AUSTIN

Attorney General Paxton has joined a multistate amicus brief in support of Ohio, in the U.S. Sixth Circuit Court of Appeals, in opposition to the Biden Administration’s restrictions in the American Rescue Plan Act (ARPA). The Act prohibits states from using ARPA monies to directly or indirectly offset any reduction in net tax revenue due to a tax policy change. If a state violates this provision, it must reimburse all ARPA funds to the U.S. Treasury Department.

By forcing states to choose between reducing taxes and potentially losing billions of dollars in federal funds, the federal government threatens the right of sovereign states to determine their tax policy. Under the guise of assisting state governments and their citizens with pandemic relief, the Biden Administration is attempting to restructure our constitutional order.

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