CHARLESTON, WV (WOWK) — On Inside West Virginia Politics, West Virginia Attorney General Patrick Morrisey talks about the 13 state lawsuit against the Biden Administration and the U.S. Treasury over a provision in the federal stimulus that bars tax cuts from being offset with relief money.
According to the attorney general, the latest spending bill would give West Virginia $1.25 billion, however with one of the conditions to accepting the money is that the state cannot lower taxes and cannot use any of the money from COVID-19, either directly or indirectly, to have a net lower revenue.
Morrisey says if this is not fixed, West Virginia and the state treasury could face a clawback. A clawback is a provision under which money that’s already been paid out must be returned to the employer or the firm.
The lawsuit says this provision in the federal spending violates the state’s sovereignty because they’re trying to command the state’s right to use their core taxing power.