FLORIDA - Florida has joined a 13-state coalition in filing suit against the federal government's effort to limit the ability of states to cut taxes in return for economic aid.
The lawsuit grows out of a provision in the Biden administration's proposed $1.9 trillion economic relief legislation that would prohibit state and local governments from using funding provided in the aid package to offset tax cuts in their jurisdictions.
The complaint argues that the U.S. Treasury cannot force states to relinquish control of their taxing authority in return for much-needed economic aid to make up for the losses suffered from the coronavirus pandemic.
“The federal government is trying to tell Florida we cannot lower your taxes,” said Attorney General Ashley Moody in a news release. “That is why I am joining attorneys general from across the country in taking legal action against the Biden administration to end this heavy-handed federal overreach.”
Members of the coalition initially sought to avoid litigation by asking U.S. Treasury Secretary Janet Yellen to confirm the legislation would not strip states of their taxing authority.
However, the lawsuit states that Secretary Yellen’s response did not place limits on the vague provision.
The Attorneys General filed the lawsuit against the U.S. Department of the Treasury, Secretary Yellen and the department’s Acting Inspector General Richard K. Delmar.
The lawsuit sets forth charges of unconstitutional exercise of federal power, specifically violations of the 10th Amendment, the conditional spending doctrine and the anti-commandeering doctrine.
The attorneys general seek a court order that prohibits enforcement of the federal tax mandate and a declaration that it is unconstitutional.
Florida joined the lawsuit, which was led by Alabama, Arkansas and West Virginia. The other states that have signed on are Alaska, Iowa, Kansas, Montana, New Hampshire, Oklahoma, South Carolina, South Dakota and Utah.
The lawsuit was filed in the U.S. District Court for the Northern District of Alabama.
You can read the lawsuit on this website – https://bit.ly/3drnpGn.