Two Fifth Circuit judges quizzed attorneys at oral arguments Monday about whether a provision barring states from using federal pandemic aid for tax cuts is clear, given the fungible nature of money.
Texas, Louisiana, and Mississippi challenged the American Rescue Plan Act’s “offset provision,” which says states can’t use the federal money to either directly or indirectly offset a reduction in net tax revenue. The Treasury Department asked the US Court of Appeals for the Fifth Circuit to overturn a federal trial court’s ruling that the provision “prohibits tax cuts altogether,” making it unconstitutionally coercive and in violation of anti-commandeering …
Read full article at Bloomberg
