Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

SUPREME COURT TO HEAR CUNO

September 28, 2005

The U.S. Supreme Court agreed to hear the Cuno case on state tax incentives. The Sixth Circuit decision disallowed state tax incentives Ohio granted to Daimler-Chrysler.

The court hinted that it may sidestep the Commerce Clause issues raised by the Sixth Circuit. It requested briefs on whether the plaintiffs have standing to challenge the credits. If the court finds that the Cuno plaintiffs weren't entitled to bring the suit in the first place, the decision would probably be vacated.

It would be nice if Congress would step in and stop the states' beggar-thy-neighbor competition to subsidize well-connected businesses. A dismissal of the case on jurisdictional grounds would take the heat off Congress and allow the states to continue their circular firing squad corporate welfare competition.

The TaxProf Blog has coverage and links.

      Bookmark: del.icio.us • Digg • reddit