Supreme Court won’t hear Missouri lawsuit over COVID aid for tax cuts in loss for Schmitt
The Missouri Attorney General’s Office has lost its bid to block a federal law that prevents states from using COVID-19 aid for tax cuts, after the U.S. Supreme Court on Tuesday refused to take up the state’s appeal.
The high court issued an order declining to take the case and, as is typical, offered no reasoning for its decision. The decision is a blow for Sen. Eric Schmitt, a Republican who sued over the prohibition in 2021 as state attorney general.
The U.S. Supreme Court’s decision leaves in place a lower court ruling that Missouri lacked standing to sue. The procedural ruling came under Missouri Attorney General Andrew Bailey, who was appointed by Gov. Mike Parson to replace Schmitt and took office in early January.
The Missouri Attorney General’s Office, now under Bailey, declined to comment on Tuesday. Schmitt’s press secretary, Will O’Grady, also declined to comment on the ruling and referred The Star to the Attorney General’s Office.
Schmitt filed the lawsuit less than a week after he announced his candidacy for Senate. He campaigned in large measure on his record of frequent litigation against the federal government, as well as legal challenges against schools and cities over mask mandates.
When Schmitt sued the Treasury Department over the policy in March 2021, he argued that the state shouldn’t have to choose between implementing tax policy or receiving federal COVID-19 relief funds, especially at a time when the pandemic had harmed small businesses and individuals.
The provision was a late addition to the $1.9 trillion stimulus package and came as Republican-controlled state legislatures across the country were weighing tax cuts.
“If adopted, the broad interpretation of the Tax Mandate would impose a draconian and unprecedented federal restriction on a core aspect of state sovereignty—each State’s authority to set its own tax policy. This interpretation would be plainly unconstitutional,” Schmitt said at the time.
But Treasury Secretary Janet Yellen told state attorneys general at the time that states could still implement a “broad variety of tax cuts,” as long as they weren’t tied directly to the federal aid. Missouri lawmakers in 2022 approved an income tax cut and may consider additional tax cuts this year.
The White House did not immediately respond to a request for comment.
The Star’s Daniel Desrochers contributed reporting
This story was originally published January 17, 2023 at 1:29 PM.
