Dems Get Outmaneuvered Again, Judge Axes Tax Cut Rule in COVID-Relief Act

Dems Get Outmaneuvered Again, Judge Axes Tax Cut Rule in COVID-Relief Act

( – For decades, the Democrats were labeled the tax and spend party, and for a good reason. There isn’t a tax they don’t love. Show them a program that someone wants, and lobbyists are likely to swarm Democratic offices with ideas of how they can spend taxpayer funds. It’s a known fact that since Ronald Reagan, they rarely, if ever, cut taxes.

Democrats despise tax cuts so much that they even made a provision in the COVID-19 relief bill, known as the American Rescue Plan, that says states couldn’t cut taxes if they received any money from the federal government. As a result, 13 GOP states sued the federal government. On Monday, November 15, a federal judge ruled in favor of state sovereignty and axed the provision out of the law.

Federal Judge Rules for States

Democrats enacted the $2 trillion American Rescue Plan using a budget process known as reconciliation. It allowed Democrats to pass the legislation without a single Republican vote in the Senate. The partisan Democratic plan directed $195 billion in flexible funds to states, but there was a catch: if states took the money, they couldn’t cut taxes, period. End of discussion.

The Republican states argued that Congress did not have the Constitutional authority to dictate their budgets as a separate sovereign entity and that the provision amounted to blackmail. US District Judge L. Scott Coogler agreed and instructed the US Department of Treasury not to enforce that section of the law.

Judge Cooler stated that the tax cut restriction amounted to a “federal invasion of State sovereignty.” He added that the provision was “unconstitutionally ambiguous” and it left states guessing whether or not changes to their budgets or tax reductions would trigger the Treasury Department to force repayment of the federal distribution.

In addition, Cooler said the tax mandate restriction forces states to adopt a federally preferred tax policy. Translation: the federal government hijacked the states, and Democrats tried to force Republicans to enact Democratic tax policies under the guise of legislation.

States Are Sovereign Entities

The US system of government is among the most unique in the world. In 1787, states came together to form the federal government by creating the US Constitution. From the first day of the Republic, states were sovereign entities, which is why they have their own constitutions, borders, and unique ways of conducting affairs.

The US Constitution grants the federal government limited and specific powers. The first 7 amendments in the Bill of Rights inform the government of what it cannot do. The Tenth Amendment states that whatever powers are not explicitly granted to the federal government are left to the states.

Judge Coogler’s ruling is a significant win for the principle of federalism and the rule of law in America. The Supreme Court has continually stated that the federal government cannot use the weight of law or federal dollars to control the states.

In March, Democrats sent a very clear message to the country for those listening. They intend to dictate to America how things are going to be, and America will get on board one way or another.

How’s that working out for them?

Don Purdum, Independent Political Analyst

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