Bloomberg Tax
March 17, 2021, 8:10 PM

Ohio Sues Biden Administration Over Stimulus Tax Restriction (3)

Erik Larson
Erik Larson
Bloomberg News

Ohio sued the Biden administration over a provision in the $1.9 trillion Covid-19 relief law that bars states from using stimulus money to reduce taxes, claiming the rule illegally restricts the state’s power to change its tax structure and economic policy.

The lawsuit, filed Wednesday against the U.S. Treasury Department, seeks to bar enforcement of the so-called tax mandate that Ohio Attorney General Dave Yost claims was added at the last minute to the stimulus plan, which includes more than $195 billion in aid to struggling states.

The provision, added by Senate Majority Leader Chuck Schumer, is holding Ohio’s ...

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