1. Short title
This Act may be cited as the “Let States Cut Taxes Act”.
Let States Cut Taxes Act
A BILL
To amend the Social Security Act to remove the restriction on the use of funds under the Coronavirus State Fiscal Recovery Fund to offset reductions in State or territory tax revenues.
2. Removal of restriction on use of funds under Coronavirus State Fiscal Recovery Fund
Removal of restriction— Paragraph (2) of subsection (c) of section 602 of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021 (Public Law 117–2), is amended to read as follows:
“(2) Further restriction on use of funds—No State or territory may use funds made available under this section for deposit into any pension fund.”
Conforming amendments— Such section is further amended—
in subsection (d)(2)(A), by striking “, including, in the case of a State or a territory, all modification to the State’s or territory’s tax revenue sources during the covered period”;
in subsection (e), by striking “such subsection,” and all that follows through the period and inserting “such subsection.”; and
in subsection (g)—
by striking paragraph (1); and
by redesignating paragraphs (2) through (7) as paragraphs (1) through (6), respectively.