(RoyalPatriot.com )- In another example of Federal overreach, President Joe Biden’s “American Rescue Plan” COVID “relief” package included a provision that limited state tax cuts. The spending package prohibited states from using relief funds to offset tax cuts or credits.
This provision was challenged by Ohio Attorney General David Yost who filed a federal lawsuit against the Department of the Treasury and Treasury Secretary Janet Yellen alleging that the provision was unconstitutional.
And last Thursday, US District Court Judge Douglass Cole issued a permanent injunction against the Administration, ruling that the provision exceeds the federal government’s power over states.
Judge Cole, a Trump appointee, determined that the tax mandate “falls short of the clarity” that Supreme Court precedent requires for the Constitution’s spending clause where it relates to conditional grants to the states. Cole also rejected Secretary Yellen’s argument that the Treasury Department regulations cleared up the lack of clarity in the provision.
Cole ruled that the mandate exceeded Congressional power under the Constitution. He also found that Ohio met the conditions “for injunctive relief to prevent the ongoing harm that this constitutional violation is causing.”
In an interview with the Washington Examiner after the ruling, Attorney General Yost put it bluntly, saying that if the federal government doesn’t stay in their lane, “we’re prepared to bump them up against the guardrail and keep them where they belong.”
After the ruling, a Treasury Department spokesperson told the Examiner that the department disagrees with the court’s decision and is in the process of exploring next step options.
Likely among those options will be appeal.
The Treasury spokesperson added that they are confident that the provision is constitutional and are “committed to implementing it in a manner consistent with Congress’ direction” in order to continue promoting a “robust and equitable recovery.”
“Equitable.” Sure. What’s a little unconstitutional federal overreach compared to “equity?”
The ruling in Ohio’s suit is only the first. Several other states have signed on to another federal lawsuit contending that the mandate is a violation of the Tenth Amendment, the conditional spending doctrine and the anti-commandeering doctrine. Additionally, Arizona Attorney General Mark Brnovich has also filed suit attacking the provision.