Wednesday, May 17, 2006

Supremes Keep Toledo Taxpayers Hanging On

A unanimous Supreme Court ruled that a taxpayers' group did not have standing to challenge the decision of Toledo and two school districts to provide $300 million in property and franchise tax incentives to DaimlerChrysler for building a Jeep plant. The taxpayer group favored using the money for educational spending. Yet to be addressed is the question as to whether state tax incentives are inconsistent with the commerce clause by discriminating against states which do not provide incentives.

Though not as onerous as Kelo, I am still concerned about where this decision, especially given the power that an unanimous decision has, might not lead future court decisions into scary ground. Though I do not automatically oppose state incentives for new businesses, I do NOT like the concept that taxpayers are to be a silent cash cow for whatever governments (and, in some cases, businesses) may desire.


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