Commentary While the public focuses on the Biden administration’s vaccination mandate, many are overlooking yet another new federal mandate: Congress’s effort to ban state tax cuts. Congress passed the so-called “American Rescue Plan Act” (ARPA) in March. The statute prohibits any state accepting ARPA funds from cutting state taxes if ARPA money reimburses the state “directly or indirectly” for funds “reduce[d]” from the tax cut. States must provide detailed records to federal regulators to justify their tax decisions. As a matter of policy, Congress’s tax mandate makes no sense. If our goal is to recover from economic damage inflicted by COVID-19, then cutting taxes and unleashing private sector growth is the best way to do it. But the mandate is more than bad policy; it’s also unconstitutional. Last July, Ohio federal judge Douglas R. Cole so ruled (pdf). Judge Cole’s decision was based on modern Supreme Court 10th Amendment cases. …
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