Tax Foundation Files Two U.S. Supreme Court Briefs

September 25, 2007

Last week, the Tax Foundation filed amicus curiae (“friend of the court”) briefs with the U.S. Supreme Court in two cases:

Staff IT, Inc. v. United States (07-221) – The Tax Foundation’s brief supports Staff IT, Inc.’s effort to have its case heard by the U.S. Supreme Court. If the lower court ruling stands, the brief argues, “troubled small business that owe taxes and creditors will end up paying neither. This is a result that benefits no one, and a result that Congress sought to avoid.” See more here.

Kentucky Dep’t of Revenue v. Davis (06-666) – The Tax Foundation’s brief supports George and Catherine Davis, Kentucky residents who invested in municipal bonds issued by several states. Federal law excludes from income tax all interest earned by such bonds, but Kentucky punishes out-of-state investment by taxing interest on non-Kentucky bonds. The legal challenge is based on the Commerce Clause of the U.S. Constitution, which bars states from solely punishing out-of-state activity. The Supreme Court will hear the case on November 5. See more here.

See all of the Tax Foundation’s recent amicus filings here.

Related Articles