CHARLESTON – Our office has been attentively watching every move the Biden Administration makes — particularly those that have the potential to harm West Virginians.
We recently found a major problem hidden deep within the new COVID law.
That law contains an unconstitutional provision that impinges upon West Virginia’s sovereignty and its well-established, constitutional power to lower taxes for its citizens.
We acknowledge Congress has authority to place some limits on how federal aid is spent, however, such power is not unlimited.
This legislation, especially by using the word “indirectly,” steps far beyond the acceptable boundary since it restricts the use of stimulus funds to offset a reduction in revenues even if it does so indirectly.
The problem with that is money is fungible in state budgets and Congress may not micromanage a state’s fiscal policies.
The tax mandate in this bill puts states in an untenable predicament.
It’s not a real choice for a state to turn down their COVID relief money. West Virginia’s share, for example, represents more than 25 percent of one year’s budget.
But it’s also not a real choice for the state to forfeit one of its core constitutional functions – its ability to lower taxes for its citizens, which ultimately would lead to a reduction in revenue.
Simply put, this means the federal government cannot strip from West Virginia one of its core constitutional functions in exchange for a large check.
Without our lawsuit, future West Virginia taxpayers could be set up for a big bill from the feds years from now, should the federal government one day choose to claw back this money.
Our team joined a broad coalition of attorneys general in seeking to avoid litigation. We sought an assurance from the U.S. Treasury Department that the legislation’s ambiguous term, “indirectly,” would not be interpreted in a manner that violates the Constitution.
Needless to say, the Treasury Secretary’s response was not satisfactory.
Our office was left with no option other than seeking a court order to protect West Virginia’s interests by prohibiting enforcement of the federal tax mandate and declaring it unconstitutional.
We stand ready to meet the Biden administration in court over this unprecedented exercise of federal power — one of the most egregious power grabs in our nation’s history.
We take great issue with Congress’ decision to potentially deny states the ability to cut taxes, even if these states would have enacted tax cuts without COVID-19 relief funds.
I won’t let the federal government run roughshod over West Virginia.
I want to give West Virginia the flexibility to make the tax changes it sees fit without handcuffs by the feds.
Protecting taxpayers from such unconstitutional overreach will ensure that West Virginia can set tax policies without interference and reach her full potential.
Morrisey, a Republican, is West Virginia's Attorney General.
