13 state AG's sue Biden admin on stimulus tax rule

STEVE: 13 STRAIGHT SUING THE BIDEN ADMINISTRATION OVERRULING THE FEDERAL STIMULUS THAT BARS STATES TO RELIEF MONEY TO OFFSET TAX CUTS. ATTORNEY GENERALS CALLING IT QUOTE ONE OF THE MOST EGREGIOUS POWER GRABS OF THE FEDERAL GOVERNMENT IN THE HISTORY OF THE UNITED STATES. ONE OF THOSE GUYS SUING IS WEST VIRGINIA ATTORNEY PATRICK MORRISEY. HE CO-LED THE LAWSUIT. HE JOINS US LIVE FROM WEST VIRGINIA. PATRICK, GOOD MORNING TO YOU. >> HEY, GOOD MORNING, IT'S GOOD TO BE WITH YOU TO TALK ABOUT THIS VERY IMPORTANT ISSUE. STEVE: IT IS IMPORTANT. AND, FOR THE MOST PART, YOU KNOW, YOU HAVE GOT THIS 500 PAGE BILL OR WHATEVER IT WAS THERE ON ONE PAGE WAS A LITTLE GEM. JUST A LITTLE IED ESSENTIALLY THAT SAID THAT STATE LIKE YOURS, YOU CAN'T CUT TAXES IF WE GIVE YOU A BUNCH OF DOUGH. THIS IS ONE OF THE AMAZING PROVISIONS YOU WILL EVER SEE COME OUT OF CONGRESS. IT'S NOT ONLY THAT THEY ARE SEEING THAT YOU CAN'T DIRECTLY USE COVID MONEY FOR TAX CUTS. THEY ARE GOING MUCH FURTHER. THEY ARE SAYING THAT TO THE EXTENT THAT YOUR STATE REVENUE IS LOWERED OR THAT THERE IS INDIRECT EFFECT THAT YOU COULD BE SUBJECT TO A CLAW BACK FROM THE FEDERAL GOVERNMENT AND WHEN YOU ARE TALKING ABOUT A STATE LIKE WEST VIRGINIA THAT LAST ABOUT 1.25 BILLION-DOLLAR AT STAKE, THAT HAS A VERY SIGNIFICANT CHILLING EFFECT. WE THINK THIS IS CLEARLY ARE WE ARE HERE AND GOING TO MAKE OUR ARGUMENTS. THIS IS SO CRITICAL FOR US TO WIN BECAUSE IT'S THE FIRST ISSUE WHERE THE BIDEN ADMINISTRATION IS TRYING TO RUN ROUGH SHOT OVER THE STATE THERE WILL BE MANY MORE, I THINK THE PRECEDENT WE ESTABLISH HERE IS GOING TO BE REVEALING FOR THE NEXT FOUR YEARS. SO MR. ATTORNEY GENERAL PART OF THE BILL THAT FUNDS $1.9 TRILLION WORTH OF RESCUE MONEY THE AMERICAN RESCUE PLAN IT SAYS THIS A STATE OR TERRITORY SHALL NOT USE THE FUNDS PROVIDED UNDER THIS SECTION TO EITHER DIRECTLY OR INDIRECTLY OFFSET A REDUCTION IN NET TAX REVENUE OF SUCH STATE OR TERRITORY. WHAT IT COMES DOWN TO IS AND WE HAVE BEEN TALKING ABOUT THIS AND YOU KNOW IT, I'M SITTING IN NEW YORK CITY. AND NEW YORK CITY HAS HAD A GIGANTIC BUDGET SHORT FALL IN TAXES FOR A VARIETY OF REASONS DURING THE COVES. SO YOU HAVE GOT ALL THE STATE EXPENDITURES AND STUFF LIKE THAT. PENSIONS AND STUFF LIKE THAT. WHAT THIS BILL DOES IS IT OFFERS NEW YORK STATE AND OTHER BLUE STATES A LIFELINE. THERE ARE OTHER STATES THAT HAVE RUN THEMSELVES EFFICIENTLY, LIKE WEST VIRGINIA, AND SOME STATES WERE PLANNING TAX CUTS BUT NOW YOU CAN'T DO IT OR YOU LOSE THE DOUGH. >> IT'S TRULY UNBELIEVABLE BECAUSE THERE IS A DISPRIT EFFECT FROM STATE TO STATE. STATES MANAGING THEIR BUDGETS EFFECTIVELY REALLY GET PENALIZE. SHOW HOW OBSCENE THIS PROVISION IS IMAGINE THAT YOU WANTED TO MAKE A SMALL LITTLE TWEAK IN YOUR TAX COVID-19 CODE. MAYBE YOU WANT TO EXPAND THE FOUNT FOREPEOPLE TO DO CHARITABLE DEDUCTIONS OR YOU WANT TO DROP THE SALES TAX DOWN. MAYBE COMPETE WITH ONE OF YOUR NEIGHBOR STATES. THERE IS A READING OF THIS NEW LAW THAT YOU ARE NOT GOING TO BE ABLE TO DO IT. AND I KNOW THE TREASURY SECRETARY SAID WELL, WE ARE NOT GOING TO FORCE IT. BUT THE LANGUAGE IS SO VAGUE AND SO OPEN-ENDED THAT STATES ARE DEEPLY CONCERNED ABOUT THIS. AND WEST VIRGINIA AND THEY ARE TRYING TO MAKE SURE THAT THERE IS A MAJOR TAX CHANGE RIGHT NOW TO LURE MORE CITIZENS INTO THIS SPACE THEY WILL PAY A HUGE PRICE THUNDER LAW. I'M NOT GOING TO LET THAT HAPPEN. I REPRESENT THE PANDEMIC OF OUR STATE. WE ARE GOING TO STAND UP AND FIGHT. STEVE: I THINK SOMEBODY IN THE ADMINISTRATION NEED TO READ ABOUT FEDERALISM AND REALIZE THERE ARE LIMITS WHAT THE FEDERAL GOVERNMENT CAN DO AND WHAT THE STATES GOVERNMENT CAN DO. IT IS CONTAINED IN ONE OF THOSE THOUSAND BOOKS CONTAINED BEHIND YOU RIGHT NOW MR. ATTORNEY GENERAL. >> ONE QUICK POINT, THAT THE BOTTOM LINE ON THIS CASE IS THAT YOU CANNOT COERCE A STATE TO DROP ONE OF ITS CORE CONSTITUTIONAL FUNCTIONS IN EXCHANGE FOR A LARGE POT OF MONEY FROM THE FEDERAL GOVERNMENT. NOT PERMITTED UNDER THE CASE LAW AND

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Keywords: fox friends, fox news network, fox news channel, fnc, biden, joe biden, president biden, biden economic policy, economic policy, us news, us, united states, stimulus tax, biden administration, fox news, biden lawsuit, taxes, us taxes, president joe biden, lawsuit, attorney general, tax hike, biden tax hike, biden taxes, biden stimulus tax, states suing biden, biden sued by states

Id: Wq7aCQXtb8g

Length: 4min 16sec (256 seconds)

Published: Fri Apr 02 2021