State Tax Cuts And The New Federal COVID Relief Funding
Discussion is taking place about a provision in the American Rescue Plan that was passed by Congress and Signed by President Biden last week.
A part of the bill that is under discussion states that certain parts of the new federal funding shall not be used either directly or indirectly to offset a reduction in net tax revenue in a state.
The questions revolve around how this provision might impact proposed tax cuts in a state.
Like many federal laws implementing this provision will most likely require clarification from federal officials.