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Easy Answers

Kelly Phillips ErbMay 17, 2006November 14, 2019

The U.S. Supreme Court finally ruled on a landmark tax incentive case involving the rights of individual states to provide tax breaks to corporations who choose to locate manufacturing and other facilities within the borders of those states. The ruling was viewed as key since almost every state in the country has some sort of dispute involving similar issues.

The answer? Nothing. Well, almost nothing.

Rather than tackle the issue of whether individual states have the Constitutional right to provide incentives to in-state corporations at the expense of others, the Supreme Court took the easy way out:  they ruled that the taxpayers in Ohio who brought the suit did not have standing to do so. This renders the whole case – and thus, the key issue – moot for the time being.

The case, Cuno v. Daimler-Chrysler, was dismissed by a unanimous vote on the Court.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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