IN THE SENATE OF THE UNITED STATES
March 15, 2021
Mr. Crapo (for himself, Mr. Grassley, Mr. Cornyn, Mr. Portman, Mr. Scott of South Carolina, Mr. Lankford, Mr. Daines, Mr. Young, Mr. Risch, and Mr. Thune) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend title VI of the Social Security Act to remove the prohibition on States and territories against lowering their taxes.
This Act may be cited as the
State Fiscal Flexibility Act of 2021.
Removal of restriction of use of Coronavirus State Fiscal Recovery funds
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:
Further restriction on use of funds
No State or territory may use funds made available under this section for deposit into any pension fund.
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.
The amendments made by this section shall take effect as if included in the enactment of the American Rescue Plan Act of 2021.