Who Says Tax Law Can’t Be Fun? A Word-Game Based on Cuno v. DaimlerChrysler
July 22, 2005
The main problem with the Sixth Circuit’s decision in Cuno v. DaimlerChrysler is its overbreadth. In other words, in striking down Ohio’s investment tax credit the Sixth Circuit had to create such an overbroad rule to find it unconstitutional (primarily because the Commerce Clause had never been intended, or actually used, to reach state tax programs like Ohio’s investment tax credit) that a number of routine state tax programs could be swept into the court’s reasoning.
To demonstrate the breadth of the Sixth Circuit’s ruling, we invite our readers to play a “word game” with one of the sentences in the Sixth Circuit ruling quoted below. This sentence comes from a summary of the plaintiff’s argument, which the Court apparently accepted. In the blank, the Court used the term “Ohio investment tax credit.”
“[T]he economic effect of the _______________ is to encourage further investment in-state at the expense of development in other states and that the result is to hinder free trade among the states.”
Can our readers think of any state tax law, spending program, infrastructure improvement, etc., that can be inserted in place of “Ohio’s investment tax credit” but not be said to “encourage further investment in-state at the expense of development in other states”?
Please e-mail me your answers at email@example.com.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback