Resolution Urging Congress to Let States Cut Taxes


This Resolution calls on Congress and the Judicial Branch to shield taxpayers from federal overreach in the American Rescue Plan Act, which included an apparent ban on net state revenue reductions through 2024.

Resolution Urging Congress to Let States Cut Taxes

Model Resolution

WHEREAS, the American Rescue Plan Act (ARPA) included $350 billion in State and Local Fiscal Recovery Funds, despite an increase in total state and local revenue in calendar year 2020;

WHEREAS, ARPA funds were in addition to hundreds of billions in federal assistance to state and local governments through the Coronavirus Aid, Relief, and Economic Security Act (CARES) and other measures in 2020;

WHEREAS, every dollar of federal aid received by states leads to higher taxes on state and local taxpayers, on average;

WHEREAS, ARPA appears to prohibit states that accept the federal funds from utilizing them to directly or indirectly reduce net state tax revenue through 2024;

WHEREAS, any efforts by states to cut taxes could potentially be called into question by aggressive federal action, harming taxpayers and future economic competitiveness of states;

WHEREAS, having the federal government use “the power of the purse” to curtail the use of competitive federalism is incredibly damaging to our American system of government and tips the scales toward central planning and micromanagement by the federal government;

NOW, THEREFORE, BE IT RESOLVED that Congress and the Judicial Branch must shield states and their hardworking taxpayers from burdensome federal overreach in ARPA and let states cut taxes.