Treasury Secretary Janet Yellen told Brnovich nothing in the law prevents Arizona from cutting taxes.
Arizona Attorney General Mark Brnovich believes his lawsuit over a tax cut ban in President Joe Biden’s coronavirus relief law could reach the Supreme Court.
Brnovich on Thursday sued the U.S. Treasury Department over a provision in Biden’s coronavirus relief law that bars states from using the cash they get to directly or indirectly cut taxes.
The Republican contends the provision is unconstitutional because it is ambiguous and imposes on Arizona’s sovereignty by attempting to control state budget decisions.
Ohio’s attorney general filed a similar lawsuit last week.
“Hopefully, federal judges will do the right thing and say this is clearly unconstitutional and this is a violation of the spending clause and it undermines state sovereignty,” Brnovich told KTAR News 92.3 FM’s The Mike Broomhead Show on Monday.
The lawsuit came despite Treasury Secretary Janet Yellen telling Brnovich in a Tuesday letter that nothing in the law prevents Arizona from cutting taxes. What it does bar is using the $4.8 billion Arizona is getting from the American Rescue Plan Act to backfill those revenue cuts with the federal money.