September 27, 2005
Supreme Court Agrees With Tax Foundation Amicus Brief, Will Hear Case of DaimlerChrysler v. Cuno
For immediate release.
Media contact: Chris Atkins (202) 464-5106
WASHINGTON, D.C.--As recommended by an amicus brief filed by the Tax Foundation on July 15, the United States Supreme Court has agreed to hear the case of DaimlerChrysler v. Cuno. The Tax Foundation recommended review of the Cuno decision--a Sixth Circuit Court of Appeals ruling that invalidated an Ohio investment tax credit--on grounds that it is legally flawed and threatens state tax competition.
"This is good news for taxpayers and the states," said Staff Attorney Chris Atkins, co-author of the amicus brief. "We hope the Supreme Court will bring some clarity to this area of the law and affirm the principle that states are free to develop their own business climates so long as they do not discriminate against out-of-state taxpayers."
The Tax Foundation urged the Court to grant a writ of certiorari to the Cuno case to bring needed clarity to its Commerce Clause doctrine. Under the Cuno ruling, the affected states within the Sixth Circuit would be disadvantaged compared with other states. Additionally, the Cuno decision did not preserve the idea of tax competition among the states.
"The Commerce Clause of the Constitution was designed to encourage competition, including tax competition, between the states," said Atkins. "Since the Cuno ruling imperils all forms of state tax competition--not just tax incentives for companies--we applaud the Court's decision to hear the case."
The Tax Foundation usually advises states against enacting targeted tax relief packages such as the Ohio provision at issue in Cuno, but because the right of states to shape their intrastate tax climate must be preserved, the Foundation's amicus brief argued that the Supreme Court should review and overturn the ruling.
The Tax Foundation has monitored tax policy at the federal, state and local levels since 1937. Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonprofit, nonpartisan 501(c)(3) organization based in Washington, D.C.
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(Read the news release announcing the Tax Foundation's amicus brief at: http://www.taxfoundation.org/press/show/957.html)
(Read the Tax Foundation's full amicus brief at: http://www.taxfoundation.org/publications/show/955.html)
