The National Federation of Independent Business’s Small Business Legal Center filed an amicus brief in support of Utah Attorney General Sean Reyes’ lawsuit against the federal government.
Reyes’ suit concerns provisions in the American Rescue Plan Act that the plaintiffs say leaves doubt as to whether states can lower their own taxes. The plaintiff’s say that the American Rescue Plan Act of 2021 made funds available to states if they agree not to pass any laws or take any administrative actions that decrease their net revenue, whether that decrease comes through tax credits, rebates, reductions in tax credits, or new or expanded deductions.
“Our state’s sound fiscal fitness is the result of choices we correctly made and should not be put on hold by a last-minute amendment slipped into the Rescue Plan Act,” Candace Daly, Utah state director for the National Federation of Independent Business (NFIB) said. “More than just an issue of dollars and cents, this is an issue of Utah’s basic sovereignty to be the master of its own destiny.”
The amicus brief was filed on April 30 in a U.S. District Court in Alabama, where the case is being heard.
“The Utah Legislature recently passed $100 million in tax relief to families with children, veterans, and older residents receiving Social Security. But that relief is now at risk because the American Rescue Plan Act potentially denies states the ability to cut taxes … we joined in this lawsuit against the Administration in addition to an earlier joint letter asking Secretary Yellen to confirm that the Act will not prohibit Utah and other states from providing much-needed tax relief,” Reyes said back on March 31.
Reyes is joined by 12 other state attorneys general in the Alabama case. Arizona, Missouri, and Ohio have filed similar lawsuits.
“Congress passed the American Rescue Plan to relieve some of the financial pressure caused by the pandemic, but a provision that blocks Utah and other states from cutting taxes is eroding state sovereignty and hurts local businesses. NFIB believes the court should block this unprecedented tax mandate and grant the states’ motion for a preliminary injunction,” Karen Harned, executive director of the NFIB Small Business Legal Center, said.