NFIB Amicus Brief Argues Against Tax Mandate in American Rescue Plan

Date: April 09, 2021

COLUMBUS (April 9, 2021) – NFIB filed an amicus brief in the case Ohio v. Yellen at the United States District Court for the Southern District of Ohio supporting Ohio in its challenge to the provision of the American Rescue Plan Act of 2021 that would prevent states from using funds for tax relief, directly or indirectly.

“Small businesses are still facing many challenges coming out of the COVID-19 pandemic and continue to need as much financial relief as possible,” said Karen Harned, Executive Director of NFIB’s Small Business Legal Center. “Congress passed the American Rescue Plan to help alleviate the financial devastation caused by the pandemic. The provision in the Act that prevents states from cutting taxes is eroding state sovereignty and hurts Main Street.”

The American Rescue Plan Act of 2021 made funds available to states if and only if states agree to not pass any laws or take any administrative actions that decrease their net revenue, whether that decrease comes through tax credits, rebates, reductions in tax credits, or new or expanded deductions. NFIB believes the Court should enjoin this unprecedented tax mandate and grant Ohio’s motion for a preliminary injunction.

NFIB filed the brief with the U.S. Chamber of Commerce. Twenty-one state Attorneys General have expressed concern over the unconstitutionality of this provision.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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