Statement on Oral Argument Hearing in Tax Mandate Lawsuit
PHOENIX – On Tuesday morning, Attorney General Mark Brnovich's Office (AGO) appeared before United States District Judge Diane Humetewa, requesting a preliminary injunction to prevent the U.S. Department of Treasury (Treasury) from enforcing the unconstitutional Tax Mandate in the American Rescue Plan Act (Act).
"I will always fight to protect Arizona taxpayers and push back against federal overreach," said Attorney General Mark Brnovich. "The states created the federal government, not the other way around. The Biden Administration’s Tax Mandate is a brazen encroachment on state sovereignty, and we will continue to fight in court."
In March 2021, Attorney General Brnovich filed a lawsuit against the Treasury and federal officials to protect Arizona taxpayers from the unconstitutional Tax Mandate. The Biden Administration is threatening to withhold or recoup federal relief funding from states if they lower taxes or provide any kind of tax relief because of a clause in the Act, even if those policies are unrelated to relief funds.
The AGO argues the Tax Mandate is ambiguous and Congress has failed to provide Arizonans with the proper assurances that states can continue to craft their own tax policies and budgets without fear of federal encroachment.
In April 2021, the AGO asked the court to grant a preliminary injunction to stop the aggressive encroachment upon state sovereignty.
This is one of three federal lawsuits across the country challenging the Biden Administration's Tax Mandate.