Resolution Urging Congress to Let States Cut Taxes

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Model Bill Info
Bill Title Resolution Urging Congress to Let States Cut Taxes
Date Introduced July 29, 2021
Date Finalized August 25, 2021
Type Model Resolution
Status Final
Task Forces Tax and Fiscal Policy

Resolution Urging Congress to Let States Cut Taxes

WHEREAS, the American Rescue Plan Act (ARPA) included $350 billion in State and Local Fiscal Recovery Funds, despite an increase in total state and local revenue in calendar year 2020;

WHEREAS, ARPA funds were in addition to hundreds of billions in federal assistance to state and local governments through the Coronavirus Aid, Relief, and Economic Security Act (CARES) and other measures in 2020;

WHEREAS, every dollar of federal aid received by states leads to higher taxes on state and local taxpayers, on average;

WHEREAS, ARPA appears to prohibit states that accept the federal funds from utilizing them to directly or indirectly reduce net state tax revenue through 2024;

WHEREAS, any efforts by states to cut taxes could potentially be called into question by aggressive federal action, harming taxpayers and future economic competitiveness of states;

WHEREAS, having the federal government use “the power of the purse” to curtail the use of competitive federalism is incredibly damaging to our American system of government and tips the scales toward central planning and micromanagement by the federal government;

NOW, THEREFORE, BE IT RESOLVED that Congress and the Judicial Branch must shield states and their hardworking taxpayers from burdensome federal overreach in ARPA and let states cut taxes.