On Tuesday, attorneys with the Arizona Attorney General’s Office, appeared in federal court requesting a preliminary injunction to prevent the U.S. Department of Treasury from enforcing the tax mandate language in the American Rescue Plan Act.
In March 2021, the Arizona Attorney General’s Office (AGO) filed a lawsuit against the Treasury and federal officials to protect Arizona taxpayers from what it believes is an “unconstitutional Tax Mandate.”
The Biden Administration is threatening to withhold or recoup federal relief funding from states if they lower taxes or provide any kind of tax relief because of a clause in the Act, even if those policies are unrelated to relief funds.
The AGO argues the Tax Mandate is “ambiguous and Congress has failed to provide Arizonans with the proper assurances that states can continue to craft their own tax policies and budgets without fear of federal encroachment.”
In April 2021, the AGO asked the court to grant a preliminary injunction to stop the aggressive encroachment upon state sovereignty.