Treasury Clears States to Cut Taxes -- But Not With Stimulus
- Biden administration offers response on use of aid funds
- Republicans are seeking answers to tax-cut questions
Photographer: Stefani Reynolds/Bloomberg
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The Biden administration said in a response to concerns raised by Republicans that state governments accepting pandemic-relief money from Washington are allowed to cut taxes, but only if they don’t use the federal aid to offset those reductions.
The Treasury Department’s statement addresses a provision in the recently enacted $1.9 trillion stimulus law that provided more than $360 billion in aid to states and cities. The measure said states couldn’t use the money to pay for net revenue reductions through 2024.