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Marc Gerson Comments on Provision in Relief Law Regarding State Tax Cuts in Law360 Tax Authority

Subtitle
"Ohio Sues Treasury Over Limit on State Tax Cuts in Relief Law"

Law360 Tax Authority

Marc Gerson, former majority tax counsel to the U.S. House of Representatives Committee on Ways and Means, commented on a provision of the American Rescue Plan that prohibits any state from using federal aid "to either directly or indirectly offset a reduction in the net tax revenue" of the state. Gerson said that the provision was "a rather blunt instrument – it arguably may prevent some state action that the Congress would be supportive of – and one that may be difficult to implement and enforce given its purported purpose."