The Commerce Clause and the Constitutionality of State Business Tax Incentives

Abstract

The authors look at the arguments in Cuno v. DaimlerChrysler, in which the U.S. Sixth Circuit Court of Appeals held that Ohio's investment tax credit violated the Commerce Clause of the U.S. Constitution by penalizing companies that might want to develop business outside Ohio. Congress has the power to overturn the decision, they note. Although the Supreme Court will hear the case, action by Congress would be the only global solution, the authors say.