WASHINGTON, D.C. – Representative Mike Garcia (CA-25) co-sponsored the Let States Cut Taxes Act, which would repeal the last-minute partisan addition to the American Rescue Plan Act (ARPA) that prohibits states from enacting new tax relief for residents.

“Small businesses in California are hurting and it is imperative they receive the necessary financial assistance needed to keep their lights on and business running,” said Garcia. “Unfortunately, the Democrats snuck in a last-minute amendment to the latest relief bill that prevents states from implementing tax cuts between now and 2024. Putting up barriers to relief only further punishes our small businesses that have been harmed by state-mandated lockdowns. The Let States Cut Taxes Act would ensure states can enact new tax relief as needed, which would help small businesses recover and rebuild.” 

The Let States Cut Taxes Act would remove the provisions in the ARPA that prevent states from enacting new tax relief for residents. This bill is especially important for Californians because current provisions in ARPA conflict with provisions in California State Legislatures’ AB80. The contradicting measures have left small businesses in California in limbo as they await assistance to recover and rebuild from state lockdowns. 

The legislation is supported by the Americans for Tax Reform, FreedomWorks, ALEC Action, Heritage Action, and the National Taxpayers Union.

Learn more about the bill here.