Arizona AG Wants To Use Stimulus Package For Tax Breaks Despite Provision Barring It

By Jill Ryan
Published: Friday, March 26, 2021 - 8:48am
Updated: Friday, March 26, 2021 - 9:01am

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Mark Brnovich
Howard Fischer/Capitol Media Services
Mark Brnovich

Arizona Attorney General Mark Brnovich has asked a federal judge to rule that Arizona can keep it's share of $4.7 billion from the federal government's American Rescue Plan Act of 2021, while ignoring a specific provision — and use the money for tax breaks.

Before the federal relief package was enacted, Gov. Doug Ducey set out a multi-year plan to cut millions of dollars in taxes. However, a stimulus package provision bars states from using the money towards tax breaks. 

But Treasury Secretary Janet Yellen wrote to Brnovich informing him that the act does not prevent tax cuts. It just prevents states from using the federal dollars to finance them. 

Brnovich claims the provision is unconstitutional because it’s ambiguous, and Congress is trying to “usurp the sovereign taxing powers of the states.” He cited a New York Times report where West Virginia Sen. Joe Manchin argued that states shouldn’t be cutting taxes right now.

No court date has been set to consider the complaint.

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