WASHINGTON—Representative Scott Franklin (R–FL) joined House Ways and Means Ranking Member Rep. Kevin Brady (R–TX) and House Oversight and Government Reform Republican Leader James Comer (R–KY) in cosponsoring the State Tax Freedom Act, H.R. 2189,  which opposes an unconstitutional provision of the American Rescue Plan Act that restricts states’ autonomy to cut taxes and manage their own finances. 

"States that have helped workers, families, and Main Street businesses through tax relief need greater flexibility, not shackles from the federal government," said Rep. Brady. "Democrats rammed through an unconstitutional provision with no committee hearings or input from the states, and this bill [The State Tax and Freedom Act] will protect states’ freedom to make their own fiscal decisions."

“The American Rescue Plan is not only a massive $1.9 trillion spending spree that has the potential to destroy our economy, but also dictates how states like Florida who have properly managed their budgets during the pandemic can utilize resources. We should be prioritizing efforts to lower taxes and grow our economy rather than offering bailouts to states with high unemployment rates and mishandled finances,” Rep. Franklin said. “The American Rescue Plan Act is an assault on state sovereignty, while the State Tax Freedom Act will restore states ability to help their residents by promoting pro-growth policies.” 

The State Tax Freedom Act revokes the ban on states’ freedom to decrease taxes if they receive money from the American Rescue Plan Act’s Coronavirus State Fiscal Recovery Fund. Furthermore, the bill requires the Treasury to return the state any money withheld due to the state cutting taxes. 

Florida’s Attorney General, Ashley Moody, and twenty additional state Attorneys General have also raised concerns about the issue in a March 16 letter to Treasury Secretary Janet Yellen.

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