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Arizona AG sues over tax cut ban in Biden virus aid law

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Posted at 2:23 PM, Mar 25, 2021
and last updated 2021-03-25 17:23:21-04

PHOENIX (AP) — Arizona Attorney General Mark Brnovich has sued the U.S. Treasury Department over a provision in President Joe Biden’s massive coronavirus relief law that bars states from using the cash they get to directly or indirectly cut taxes.

The Arizona Republican contends in Thursday's lawsuit that the provision is unconstitutional because it is ambiguous and imposes on Arizona’s sovereignty by attempting to control state budget decisions.

The lawsuit was filed despite Treasury Secretary Janet Yellen telling Brnovich that the American Rescue Plan Act does not bar states from cutting taxes, only blocking Arizona from using the $4.8 billion it will get to backfill those tax cuts.