***The Iowa Standard is an independent media voice. We rely on the financial support of our readers to exist. Please consider a one-time sign of support or becoming a monthly supporter at $5, $10/month - whatever you think we're worth! If you’ve ever used the phrase “Fake News” — now YOU can actually DO something about it! You can also support us on PayPal at [email protected] or Venmo at Iowa-Standard-2018 or through the mail at: PO Box 112 Sioux Center, IA 51250

The National Federation of Independent Business, or NFIB Legal Center, filed an amicus brief in Iowa supporting the state in its challenge to the provision of the American Rescue Plan Act of 2021 that would prevent states from using federal funds for state tax relief for Iowa small business owners.

“Small businesses are still struggling to rebound from the COVID-19 pandemic and need as much financial relief as possible,” said Karen Harned, Executive Director of NFIB’s Small Business Legal Center. “Congress passed the American Rescue Plan to relieve some of the financial pressure caused by the pandemic, but a provision that blocks Iowa and other states from cutting taxes is eroding state sovereignty and hurts local businesses.”

Earlier this year, Tom Miller, Iowa’s Attorney General, initiated a lawsuit questioning Treasury Secretary Janet Yellen over part of the $1.9 trillion American Rescue Plan (ARP) Act that prevents states from using the funds they receive from the law to offset tax cuts.

“Iowa small business owners are still struggling to recover from the economic consequences of COVID-19 pandemic,” said Matt Everson, NFIB State Director in Iowa. “Iowa small business owners already pay some of the highest taxes in the country. It’s one of their top barriers for continued economic growth. Now, a provision in the ARP is putting a lot of undue confusion into lawmakers’ abilities in Iowa from continuing to lower taxes for hard working job creators. It’s a bad piece of law and bad for small business.”

The American Rescue Plan Act of 2021 made funds available to states if and only if states agree to not pass any laws or take any administrative actions that decrease their net revenue, whether that decrease comes through tax credits, rebates, reductions in tax credits, or new or expanded deductions. NFIB believes the court should block this unprecedented tax mandate and grant the states’ motion for a preliminary injunction.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Author: Press Release

LEAVE A REPLY

Please enter your comment!
Please enter your name here