American Rescue Act Seeks to Prevent States From Lowering Taxes

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So I'm guessing that headline caught your attention and the first thing you thought was, "well, here's another boneheaded mistake from another wanna be disc jockey turned writer." That should read, "American Rescue Act Seeks to Prevent States From Raising Taxes."

Nope, the headline is right. And here in the Bayou State, Attorney General Jeff Landry has joined scores of other Republican Attorney Generals nationwide to take the United States Government to task for this.

In essence, the recent stimulus package, The American Rescue Act, has included the requirement that says states that accept aid are restricted from cutting taxes through 2024.

In an article from the Louisiana Radio Network, we read that Solicitor General Liz Murrill says because the Act is already law,  “We’re going to have to probably file a lawsuit if we want to get an injunction to stop that section of the law from becoming applicable.”

Murrill goes on to say that the mandate is unconstitutional, adding “We’ve never seen those kinds of conditions placed on federal money before where we tie the hands of our Legislature.”

Apparently 21 different Attorney Generals, including Louisiana's own Jeff Landry, have asked for regulatory intervention removing the language.  If not removed, any state accepting the much needed funds, will be prevented from lowering taxes for another three full years!

Governor Edwards, who has the lone power to accept or reject the Federal funds and any requirements that come with them, says he has no problems with the mandate.

The article from LRN states:

He says he’s committed to pursuing tax reform, but only if it is revenue-neutral.

 

“So we don’t create a structural budget-deficit like the one that I inherited when I became governor,” said Edwards.