BATON ROUGE, La (KLFY) — Yesterday, Louisiana joined Mississippi and Texas in filing suit against the federal government over the $1.9 trillion “American Rescue Plan Act of 2021.”
Louisiana, Mississippi, and Texas are challenging the constitutionality of the tax mandate in Section 9901 of the American Rescue Plan, according to a press release from Attorney General Jeff Landry’s office.
The states argue the Act’s Tax Mandate violates the U.S. Constitution and are asking the Court to declare as much. Additionally, they are seeking an injunction to prevent federal officials from applying the Tax Mandate against the states.
“In exchange for badly needed funds to assist the States of Texas, Mississippi, and Louisiana and their citizens in recovering from the ongoing pandemic – the American Rescue Plan Act attempts to obligate these states to exercise their core sovereign power of taxation in the way the federal government prefers,” said Attorney General Landry. “Specifically, the Act prohibits the states from reducing net tax revenue on pain of forfeiting up to billions of dollars in federal funding.”
A copy of the suit may be found here.