Taxing and Spending Clause

In NCLA Amicus Win, Sixth Circuit Strikes Down Congress’s Unconstitutional State Tax Cut Ban

Retrieved on: 
Tuesday, November 22, 2022
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Washington, D.C., Nov. 22, 2022 (GLOBE NEWSWIRE) -- The U.S. Court of Appeals for the Sixth Circuit has affirmed a lower court decision prohibiting the Secretary of the Treasury from enforcing an unconstitutional Tax Cut Ban against the state of Tennessee.

Key Points: 
  • Washington, D.C., Nov. 22, 2022 (GLOBE NEWSWIRE) -- The U.S. Court of Appeals for the Sixth Circuit has affirmed a lower court decision prohibiting the Secretary of the Treasury from enforcing an unconstitutional Tax Cut Ban against the state of Tennessee.
  • NCLA argues in its brief that it is both unconstitutional and dangerous to centralize control over state taxes in the hands of federal officials.
  • Congress may tax and spend, but Congresss spending power has limits, and the Tax Cut Bans spending condition on the states exceeds Congresss authority under the Spending Clause.
  • NCLA released the following statements:
    Congresss Tax Cut Ban is not only unconstitutionalit is unworkable.

NCLA Notches Yet Another Amicus Win Against Congress’s Unconstitutional State Tax Cut Ban

Retrieved on: 
Wednesday, April 13, 2022
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that permanently prohibits the Secretary of the Department of Treasury from enforcing an unconstitutional Tax Cut Ban against the states of Texas, Louisiana, and Mississippi.

Key Points: 
  • that permanently prohibits the Secretary of the Department of Treasury from enforcing an unconstitutional Tax Cut Ban against the states of Texas, Louisiana, and Mississippi.
  • ARPA further authorizes Treasury to claw back any funds spent in violation of the Tax Cut Ban.
  • Congress may tax and spend, but Congresss spending power has limits, and the Tax Cut Bans spending condition on the states exceeds Congresss authority under the Spending Clause.
  • Thus, the Court permanently enjoined the Secretary from enforcing the Tax Cut Ban against the states of Texas, Louisiana, and Mississippi.