Saturday, March 20, 2021

Definitely unconstitutional

Democrats make low-tax states an offer they should refuse
Perhaps the most troubling is a legislative rider barring states that accept the aid from using the funds “to either directly or indirectly offset a reduction in the net tax revenue” derived “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.”

This suggests that, for the duration of the spending program, if a state accepts these funds it can’t pursue meaningful tax reform or, for example, use tax incentives for their citizens to secure the best educational options for their children through vouchers or tax credits. Permanent spending increases? Fine. Rewards for failed policies? No problem. Lower state taxes? No way

And definitely will result in a challenge at the Supremes

This is the Cal Teaches union, and they applied the same restriction in reverse, demanding a tax increase as part of a contract settlement. At the federal level this is not valid law.

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