Magnolia State News

The National Federation of Independent Business (NFIB) has expressed approval of a recent court ruling from the U.S. District Court for the Northern District of Texas. The decision in the case, Texas v. Yellen, permits Mississippi, Louisiana, and Texas to use funds from the American Rescue Plan Act (ARPA) for tax relief purposes. NFIB had submitted an amicus brief in this case, arguing that the tax mandate was unconstitutional and emphasizing the need for tax relief for small businesses following the COVID-19 pandemic.

Dawn McVea, NFIB State Director, commented on the impact of this decision: “Governor Reeves just signed historic legislation easing the tax burden on Mississippi’s small businesses. Allowing states like Mississippi to use ARPA funds to offset tax cuts would clear a path for additional financial relief for Main Street businesses.”

Karen Harned, Executive Director of NFIB’s Small Business Legal Center, also welcomed the court's decision: “This decision is great news for small businesses who are still recovering from the financial damage caused by the pandemic. Small businesses are managing various challenges right now including rising inflation and worker shortages and will benefit greatly from tax relief. We are glad the Court agreed that such a mandate was unconstitutional.”

The American Rescue Plan Act of 2021 provided funds to states with a stipulation that they could not enact laws or take administrative actions reducing their net revenue through mechanisms such as tax credits or deductions.

The NFIB Small Business Legal Center continues its efforts to protect small business owners' rights across various courts in the United States, currently participating in over 40 cases at both federal and state levels.