Court blocks Democrat restrictions on how states can use 'American rescue' funding
A federal judge has blocked the U.S. Treasury from enforcing a provision of the American Rescue Plan Act that prohibited states from using the pandemic relief funds to offset new tax cuts.
U.S. District Judge L. Scott Coogler ruled Monday in Alabama that Congress exceeded its power in putting the so-called tax mandate on states. He entered a final judgement in favor of 13 states that had filed a lawsuit and instructed the Treasury Department not to enforce the provision. The judge left the rest of the law in place.
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Lowering taxes are a way to boost an economy. I suspect the Democrats opposed that use of the funds because they wanted political credit for the spending.
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