Texas Attorney General Ken Paxton has filed a lawsuit against the Biden Administration over a tax provision in the federal government’s American Rescue Plan Act. The American Rescue Plan Act prohibits states from using funds received through the Act to “directly or indirectly” offset tax revenue reduction caused by changes in tax policy. Paxton alleges this condition unconstitutionally prohibits Texas and other states from instituting certain tax policies. For more information, please see Attorney General Paxton’s press release here and a copy of the lawsuit here.
