LINCOLN— Republican attorneys general from 21 states, including Nebraska, are questioning a provision in the $1.9 trillion pandemic rescue plan that bars states from using its funds to offset tax cuts. In a letter to Treasury Secretary Janet Yellen on Monday, they said the prohibition is “unclear, but potentially breathtaking” — airing concerns that any tax cut could be construed as taking advantage of the pandemic relief funds.
The attorneys general list over a dozen instances of states currently considering new tax credits or cuts that they believe could be jeopardized simply because of the relief funds.
The Treasury Department did not immediately return an email requesting comment. Signing on to the letter were Arizona, Georgia, West Virginia, Alabama, Arkansas, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, South Dakota, Texas, Utah and Wyoming.
Three Republican members of the U.S. Senate introduced a long-shot bill on Tuesday to eliminate the provision.
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