Here is an excerpt from the 5th Circuit in WV vs Dept of Treasury. They ruled that Non-Legislative Agencies cannot make law.
NCLA’s brief further argued that Treasury lacked the power to “rule by regulation” when it later promulgated a rule seeking to clarify and thereby save the scheme.
"An agency cannot exercise legislative power independently of Congress, which alone has the power to tax and spend—not the Executive Branch."
So, the court agreed with NCLA that Treasury is not permitted to clarify the Tax Cut Ban’s ambiguous text through regulation. Finally, the panel highlighted that the novelty and grand scope of the Tax Cut Ban “make it even more important that Congress speak with a clear voice,” and said that Congress cannot craft a deal with only *some* of the strings attached. NCLA commends the U.S. Court of Appeals for the Eleventh Circuit for safeguarding states’ sovereign taxing authority.
NCLA’s brief further argued that Treasury lacked the power to “rule by regulation” when it later promulgated a rule seeking to clarify and thereby save the scheme.
"An agency cannot exercise legislative power independently of Congress, which alone has the power to tax and spend—not the Executive Branch."
So, the court agreed with NCLA that Treasury is not permitted to clarify the Tax Cut Ban’s ambiguous text through regulation. Finally, the panel highlighted that the novelty and grand scope of the Tax Cut Ban “make it even more important that Congress speak with a clear voice,” and said that Congress cannot craft a deal with only *some* of the strings attached. NCLA commends the U.S. Court of Appeals for the Eleventh Circuit for safeguarding states’ sovereign taxing authority.