States challenge American Rescue Plan’s tax cut ban
The American Rescue Plan provision to limit the amount of tax reduction states can engage in if they receive federal funding is being challenged in a number of lawsuits.
On the one hand, the legislation provides funding for states and localities, but it also restricts the use of funding, according to Jeff Friedman, partner at Eversheds Sutherland and leader of the tax practice group.
June 1, 2021
