1. Short title
This Act may be cited as the “Let States Cut Taxes Act”.
Let States Cut Taxes Act
A BILL
To amend title VI of the Social Security Act to remove the prohibition on States and territories against lowering their taxes.
2. Removal of restriction of use of Coronavirus State Fiscal Recovery funds
In general— Paragraph (2) of section 602(c) of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021, 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— Section 602 of such Act is further amended—
in subsection (d)(2)(A), by striking “, including, in the case of a State or a territory, all modifications 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.
Effective date— The amendments made by this section shall take effect as if included in the enactment of the American Rescue Plan Act of 2021.