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Stop Biden, Pelosi, and Schumer from Banning Tax Cuts


President Biden, House Speaker Pelosi, and Senate Majority Leader Schumer sent a clear message in their latest COVID relief bill: Increased government spending is fine but cutting state taxes is unacceptable.

In an attempt to prevent states like Iowa from letting residents keep more of their money, the $1.9 trillion American Rescue Plan Act prohibits using any of the $350 billion in State and Local Fiscal Recovery Funds to cut taxes. As written, the bill prevents states from using relief funds "to either directly or indirectly offset a reduction in net tax revenue" that re­sults “from a change in law, reg­u­la­tion, or ad­min­is­tra­tive in­ter­pre­ta­tion dur­ing the cov­ered pe­riod that re­duces any tax (by pro­vid­ing for a re­duc­tion in a rate, a re­bate, a de­duc­tion, a credit, or oth­er­wise) or de­lays the im­po­si­tion of any tax or tax in­crease."

In other words, they are banning tax cuts. This is an astonishing level of federal interference in each state's fiscal affairs.

Sign this petition to stay updated on this issue and help ITR send a message to Washington.

Petition Text

If broadly implemented, the American Rescue Act will, in fact, undermine state sovereignty by handing over to the federal government the states’ sovereign right to create state budgets, tax structures, and taxation levels that are accountable to their citizens.

States should have the freedom to make their own tax policy in accordance with the preferences and needs of their citizens. 

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