And If You Don’t Believe Us…..

By May 16, 2006General

In case you don’t believe our take about the impact of the Cuno case (immediately below), here’s the Wall Street Journal editorial from today entitled, “Commerce-Clause Classic.”

Worth repeating the last two paragraphs:

“One irony of this debate is that the same liberals who routinely argue that tax rates don’t affect investment in Washington are now conceding that they do matter at the state level — and therefore tax competition must end. But if low taxes can induce a company to move from Michigan to Ohio, won’t lower national taxes on capital gains or personal income influence an investment to migrate from, say, Germany to the U.S.? Just asking.

During the oral arguments, Justice Antonin Scalia got to the heart off the matter by observing, ‘If the taxpayers in the case are right, it would seem that states couldn’t lower tax rates in order to compete with other states.’ It’s good to see the entire High Court, both left and right, nixing a radical new interpretation of the Commerce Clause.”