by: JonChristopher Collins
On Wednesday the U.S. Treasury Department said states can cut taxes without penalty under a new federal pandemic related law if they use their own money to offset the cuts.
According to an Associated Press story, Republican governors, lawmakers and attorneys general have expressed apprehension about a provision in the wide-ranging relief act signed by President Joe Biden that prohibits states from using $195 billion of federal aid “to either directly or indirectly offset a reduction” in net tax revenue. The restriction could apply through 2024.
Both Missouri and Arkansas Lawmakers are looking at tax cuts and programs during their current legislative sessions.