U.S. Treasury to issue new guidance on state tax provision in stimulus act

- The U.S. Treasury said on Tuesday it would issue further guidance on a contested provision in President Joe Biden’s $1.9 trillion coronavirus relief package that prohibits states from using stimulus money to replace revenue lost to tax cuts.

Treasury Secretary Janet Yellen said in a written response to those concerns: “It is well established that Congress may place such reasonable conditions on how states may use federal funding.” If states do use the funds to offset tax cuts, they will forfeit that amount from the total funds they receive, Yellen said.

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U.S. Treasury to issue new guidance on state tax provision in stimulus actThe U.S. Treasury said on Tuesday it would issue further guidance on a contested provision in President Joe Biden's $1.9 trillion coronavirus relief package that prohibits states from using stimulus money to replace revenue lost to tax cuts. good 💵🇺🇸
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