July 27, 2021

Federal Judge halts Biden’s attempts to limit state tax cuts

President Joe Biden’s $1.9 trillion coronavirus relief law will not limit states from cutting taxes, thanks to a recent ruling by a federal judge according to The Washington Times.

U.S. District Judge Douglas Cole issued his permanent injunction at the behest of Ohio Attorney General Dave Yost who brought suit against the administration’s “tax mandate.”

Cole ruled the president’s restriction on tax cuts by the states to be unconstitutional after hearing arguments over the provision:

“The Biden administration reached too far, seized too much and got its hand slapped,” Mr. Yost said. “This is a monumental win for the preservation of the U.S. Constitution — the separation of powers is real, and it exists for a reason.”

Cole eventually ruled with the plaintiff, saying that the tax mandate “falls short of the clarity” on the Supreme Court precedent that would be required for the Constitution’s spending clause that related to grants to states.

Yost filed suit against the Treasury Department and Treasury Secretary Janet Yellen, saying that the provision in the “American Rescue Plan” which kept states from using the funds for tax cuts was “directly or indirectly” is unconstitutional.

“The Tax Mandate exceeds Congress’s power under the Constitution,” Cole wrote.

That prompted a tweet from Yost saying, “The federal government needs to stay in its lane. If they don’t … we’re going to bump them up against the wall and keep them where they belong!”

The Biden administration, however, is not without recourse and is expected to appeal the ruling in an effort to get the restraints on tax cuts reinstated.

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