Kentucky has now joined Tennessee in a lawsuit filed against the Biden Administration, concerning tax relief for citizens.
Kentucky Attorney General Daniel Cameron joined Tennessee Attorney General Herbert Slatery III, to stop an unconstitutional mandate in the American Rescue Plan Act, that prohibits States from providing tax relief to their citizens.
The lawsuit, filed against Treasury Secretary Janet Yellen in the United States District Court for the Eastern District of Kentucky, argues the tax mandate unconstitutionally takes the authority of each State’s legislature to enact beneficial tax policies.
As a condition of receiving the COVID aid, the Act requires states to comply with a tax mandate that prevents it from lowering taxes for its citizens for four years.
In filing the lawsuit, Attorney General Cameron said Kentuckians expect state tax policies to be set by the men and women they elect in the General Assembly, not as a result of an edict from the Federal Government.
Attorney General Slatery said states have a constitutional right to implement their own tax policy, and should not have to choose between accepting COVID-19 relief funds or surrendering to Washington’s attempt to override elected officials.
Kentucky is expected to receive about $2.4 billion dollars from the Act, while Tennessee expects to receive about $3.7 billion dollars.