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WASHINGTON, DC – Yesterday, Congressman David Schweikert (AZ-06) joined Ways and Means Republican Leader Kevin Brady (R-TX) and House Committee on Oversight and Government Reform Republican Leader James Comer (R-KY) as an original cosponsor of the “State Tax Freedom Act.” The bill (HR 2189) pushes back against an unconstitutional provision inserted into the American Rescue Plan that restricts states’ ability to manage their own finances.
“We must put a stop to unconstitutional provisions that will unfairly restrict states’ rights from making their way through Congress,” said Rep. Schweikert. “Rewarding blue-states for their job-killing lockdowns and mismanaged budgets during the pandemic is the last thing we should be focusing on. Our main priority should be lowering taxes for hard-working Americans to recreate the recording breaking growth we saw prior to the pandemic. I am pleased to cosponsor this legislation to ensure states are protected from this unconstitutional federal intrusion, and will continue to fight for pro-growth policies to lower taxes and grow the economy.”
“States that have helped workers, families, and Main Street businesses through tax relief need greater flexibility, not shackles from the federal government,” said Rep. Brady. “Democrats rammed through an unconstitutional provision with no committee hearings or input from the states, and this bill will protect states’ freedom to make their own fiscal decisions.”
“Economists across the political spectrum agree the Pelosi Payoff to Progressives Act will hamper economic recovery and job creation,” said Rep. Comer. “The law rewards locked-down states due to their high unemployment rates and will hamper the economic recovery by prohibiting job-creating tax cuts in any state that receives a dime of funding relief from the law. The State Tax Freedom Act repeals the Democrats’ blatant attack on states’ rights and allows states to lower taxes for their residents.”
The State Tax Freedom Act will repeal the prohibition on states’ freedom to lower taxes if they receive money from the American Rescue Plan Act’s Coronavirus State Fiscal Recovery Fund. Additionally, the bill will make whole any state that is harmed by this provision, by requiring that Treasury refund the state any money that was clawed back due to the state cutting taxes.
To read the full text of the legislation, click HERE.
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