Posted on 03/19/2021 5:33:11 AM PDT by MtnClimber
The Feds attempt to take over the states' tax policies.
Hidden away in the American Rescue Plan Act of 2021, the horribly misnamed “COVID relief” giveaway law signed by President Biden, is a curious provision that prohibits states from using any of the federal funds allocated to provide tax reductions to individuals or businesses.
This provision, according to the New York Times, was slipped into the legislation at the last minute.
It reads, in pertinent part,
“A State or territory shall not use the funds provided… to either directly or indirectly offset a reduction in the net tax revenue of such State or territory resulting from a change in law, regulation, or administrative interpretation during the covered period that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase.”
(Excerpt) Read more at americanthinker.com ...
People will have no choice except to flee high tax states if there is no hope for change. Unless the low tax states are forced to raise their taxes for “fairness”.
Federal money comes with strings attached. If you accept COVID money then it only stands to reason you shouldn't cut your taxes and use the federal money to make up the difference. If you want to cut your taxes then don't accept federal COVID money and you can cut to your heart's content.
War on red states.
blue states get the bulk of the federal (our tax) money to bail out sh1t fiscal policies, but that’s not good enough. They don’t need even lower taxes in red states accelerating the exodus.
Everything dems do it strategic.
Everything republics do is doop doop de doop dum de dum dum
Biden will remove (or maybe he already has) the Trump limit for deducting local taxes from the federal tax filing. That way Red states will be paying higher federal taxes that will probably still go to bailing out the Blue states.
If you give me a hundred bucks cash and I put it in my wallet alongside a few hundred other dollars, and the next day I spend 50 bucks on gas, was I using the money you gave me?
I mean, logically, does this even make sense given that money is fungible? And what happens if this law is violated?
If a state wanted to circumvent this it is trivial.
Take the federal money and spend it in accordance with the law.
If there is any leftover create a rainy day fund.
After the law has expired, cut taxes and replenish any shortfall from the rainy day fund....
Nothing new. Carrot and stick to force behavior from the states that FedGov desires. Like witholding transportation funds from states that did not enact a 55 mph speed limit some 40 years ago. Elections, fraudulent or otherwise have consequences.
Oh yeah...oh hell no...don’t cut taxes....time to tell the Feds to shove it regarding unconstitutional laws...the Republic won’t survive this bunch of ignorant lying rats...
Given enough time there be no states only The State the democrats will make sure of that.
State laws
State Police
State prisons
State 101 rooms
I see this as an “anti-dependency” measure to warn recipients not to get used to infusions of federal cash as a substitute for getting (and keeping ) their own taxation and expenditure houses in order.
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