Supreme tax incentives question

Posted on | September 28, 2005 | Comments Off

Here’s one for today’s bizarre-ness files.

The New York Times reports that the Supreme Court has agreed to hear a case in which a federal appeals court has found business tax incentives to be unconstitutional under the so-called Commerce Clause of the Constitution.

Possibly, your response to that will be similar to mine: WTF???

It appears that the Ohio Court of Appeals ruled that tax incentives designed to lure businesses to locate (or relocate) in a state interfere with interstate commerce. Of course, this one is not going to go unchallenged, considering how many states use this as a staple in their economic development arsenal. The relevant state and company involved here — the state of Ohio and DaimlerChrystler — have appealed and the Supreme Court has agreed to hear the case.

So, just in case you thought that President Bush’s nominations to the Supreme Court aren’t going to matter to you in the context of being a microbusiness owner, think again. It’s not just about the right to privacy or civil rights.

Another instance of how pretty much everything effects your business and why you need to be paying attention.


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Category: Rants and Ruminations


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