Supreme Court Dismisses Challenge to State Tax Incentives

The US Supreme Court yesterday acted to shield billions of dollars in state tax incentives from legal challenge, when it ruled that a group of Michigan and Ohio plaintiffs did not have the right to challenge tax breaks that are widely used by US cities and states to lure investment and jobs away from competing localities.

[The] justices found that the taxpayers who brought the suit did not have “standing” to challenge the incentives because they were not directly injured by them. Those who are, arguably, more directly injured – rival companies – are unlikely to do so, since they benefit from incentives in other states.

The case involved DaimlerChrysler and tax incentives it received to build a Jeep plant in Ohio.

Daimler said yesterday that the ruling “sends a clear message that states will not be held hostage to lawsuits brought by individuals or groups with no direct connection with the issue at hand”, according to the Bloomberg news service.

Chief Justice John Roberts, writing for the court, found that the plaintiffs had no standing under the constitution to challenge in federal court state tax or spending decisions simply by virtue of their status as taxpayers.



  1. SN says:

    “U.S. Supreme Court To Taxpayers: Go Screw Yourselves”

    Damn, I was hoping they gave us the right to masterbate in public! Well, there’s always the next term!

  2. Mike says:

    I have to agree with the decision. If just being a taxpayer was enough to bring a lawsuit, there would be no end to the suits brought against the government for whatever spending programs the plaintiff may disagree with.

  3. Derek says:

    Taxation without representation seems to come to mind.

  4. Diane Ensey says:

    I have to agree with the decision. If just being a taxpayer was enough to bring a lawsuit, there would be no end to the suits brought against the government for whatever spending programs the plaintiff may disagree with.

    I agree – and that is why, for good or bad, we elect people to make decisions for the common good. And it works – kind of…

  5. ECA says:

    Its not that,
    It DOES affect them.
    Lost jobs,
    MORe taxes, because the COMPANT isnt paying them, insted of the taxpayer.

  6. Tim Champ says:

    If you don’t like it – vote. If enough people vote your way, then things change. If they don’t, guess what? People like it the other way.

    As to this specific practice – I think it makes sense to do whatever it takes to bring in jobs. The taxes made off of those fairly good paying jobs that were created more than makes up for the amount forgiven the corporation.

    And without the tax breaks, some otherwise employed people wouldn’t be. The whole case always struck me as one big NIMBY lawsuit. These people had their jobs/money, so screw the people that needed it. Quite Selfish.

  7. ECA says:

    So,
    giving TAX breaks to corps is a GOOD THING???
    Then WHO pays for it??
    THE LAND OWNERS…they will raise the property taxes, and the hiway tax, and the GAS tax…

  8. Sounds the Alarm says:

    Aren’t we all missing the point? I mean isn’t this why we vote? If the rep or governer in question does too much of this stuff – vote him/her out.

    Why go to the court?

  9. ECA says:

    10,
    why WAIt 6 years…
    Why give corps a business CUT??

    shoot them both and be done with it..

  10. SN says:

    “where do you think corporations get the cash to pay their taxes?”

    Yeah, and citizens shouldn’t pay taxes, because where do you think they get the cash to pay their taxes?! From working at corporations. So, Paul, according to your irrefutable logic, no one should pay taxes?!

  11. joshua says:

    you want jobs? You want goodies? Then you have to draw the companies that hire people into your area. Usually that involves lures, so you give a few things to get a lot of things. The jobs created by this company will move out from it like a ripple in the water, when people have jobs, spend money, then other businesses can expand or build up and hire even more people who then spend money etc., etc….the cirlce just keeps going. They will get that 300 million back, plus in 5 years.

    ECA….I don’t know where you get your money, but most people have to have a job or own a business or create art to make money. So if your so dead set against the evil’s of corporations then maybe you should look into a cave somewhere and not dirty your hands with the filthy lucre produced by businesses.

    As to the courts decision….it’s totally correct. And it was a 9-0 decision, so it’s not just Bush’s clones folks, but those lofty Liberals as well.

  12. ECA says:

    12,
    CORPS make money buy MAKING a decent product.. Thats what I HOPE(not reality).
    What do yyou DO, when your CHEAP cellphone dies?? We are 4 in consumer TECH in this world, Japan and China have better CELLphones and systems.
    I THOUGHT we were #1, until I saw the CHEAP setups the Telco’s have, and the Cellphone/cable companies dont put up ANYTHING thats advanced, without YOU/ME paying 10-100 times for it first.

    14,
    NO, I dont work anymore.. Im on disabiliry, and getting $700 per month. In a decent sociaty, I would have been FIXED before I hurt my body to much, and it SHOULDNT COST ME, a lifes savings… BUT, state and fed medical dont PAY to fix you, they PAY to keep you ALIVE ONLY.

    So, ytou are saying that its is REASONABLE/responsible of a corp to make, AFTER shares are paid, after taxes, after EVERYTHING, a profit >$100,000,000,000,000??
    Its OK, that the top of a corp makes $100,000,000 PER year so sit down and drink coffee, for 6 years, and get 21 years of retirement with an ANTI-BANKRUPTCY clause.
    Its alright to GAUGE the public, and STATES for power, if they are STUPID enough to pay. To markup goods 10-100/10,000 times…

    Its OK, that sence MOST corps, endup not paying much in taxes(

  13. ECA says:

    http://www.bls.gov/

    Have fun..Look up Min wage..
    60% of the US dont make OVER min wage.

    for some reason, the Gov says that the AVERAGE wage is in the $80,000 range…I think they are Goofing themselves.
    A little science trick proves this wrong.
    When taking an Average, if you take off equal amounts of BOTH ends, you SHOULD get about the same Value, IF its a balanced measure.
    TRY it…Take the TOP 10% and the bottom Wage earners OFF the scale, and WATCH the avg income FALL..
    Also they DONt add into that, the $0 income of those LOOKING or NOT into the numbers to BASE it FROM the WHOLE population of the USA.

  14. Mr. H. Fusion says:

    taxing corporations is one of the stupidest creations of man. everyone gets their panties in a bunch because corporations don’t pay their “fair share” of taxes. what hooey!! where do you think corporations get the cash to pay their taxes? duh! people act as if paying taxes is a *good* thing. by and large, it’s not. the government could do its job on one tenth of the revenue they get if they didn’t blow through it like think shit through a tall swede.

    Now who is trolling. If you don’t like what the government is doing with your tax dollars, then VOTE FOR THE OTHER GUY. Where do corporation’s get the money to pay their taxes? THEY STEAL IT like everyone else in this country.

    Where do you get this one tenth of all revenue crapola? What medieval rock have you been hiding under? What would you support with that 10% of the tax base? Oh yes, well we could close most of the schools, OR we could do away with the Air Force and Marines, OR we could let anyone without money just die instead of giving them Medicare or food stamps, OR fire all the police and fire fighters, close all the prisons and courts, OR, …

  15. ECA says:

    the 10% is the number of persons fromt he TOP of an estimate…
    IF an estimate is TRUE…the avg US salery being $80,000 per year…
    Then taking, 10% of those PERSONS COUNTED off the top and bottom, SHOULD give you ABOUT the same AVERAGE…
    read it for what it SAYS, I was talking about AVERAGES…Get a BETTEr monitor/GLASSES/Specs IF you cant READ that..

    YES, its stuck, broken, and weird…and I LOVE my SHIFT kEy..

  16. AB CD says:

    a 12 trillion dollar economy, with all the double taxation, and economic growth, a 10% tax rate would work very well.

  17. ECA says:

    The gas comapny Profits were HIGHER then that… If HALF, went to the economy, I wouldnt mind, OVER PAYING…

  18. RonD says:

    Kia is going to build a manufacturing plant in Georgia thanks to a sweetheart deal Georgia offered them . Details are here: http://tinyurl.com/lmjdr . Scroll down to the “State Incentives” for details. I sympathize with the plantiffs in Michigan and Ohio.

  19. ECA says:

    And considering that the numbers are based on, Those listed with the employment services as looking for work, not those that are searching on there own. those not working under the table, Those NICE mexican workers arent listed, those in Private work places like working for dad/mom, it dont list those that have 2 jobs or more at basic wages.

    Now compare that to the cost of living… where your rent should be 1/4 of your wages. i wont go into Seasonal workers that are PAID cheap, and are on the TAKE, 1/2 the year because they cant get jobs.
    or those unemployed not including ALL citizians of the US in the US..

  20. ECA says:

    Profits for the gas companies was $100, billion, in pocket.. sorry for the extra 000..

    something to ponder..
    In the EARLY 1900’s women were kept at home and FEW worked. And 1 person to make a living.
    After WWII, and the Military came back, many found that working 2 jobs with 2 people, could MAKE a great living.
    These folks started the major Housing booms, and MADE some money, and had some enjoyment.
    About the 70’s somehting happened, to increase the amounts we PAID for stuffs…And sence that time, it has been increaseing every year. If you look back, with the advances we have made in production, manufastouring, and retail,, It REALLy dont cost much more then it DID 20+ years ago.
    In reatil, they have cut so much from the BOTTOM, that cutting 1 CEO wages, is like fireing 100 lower employees at the bottom.
    wages in 83 were starting at about 2.65 an hour and TOP was 7.00
    Wages NOW start at 6.00 and TOP at 9.00.. The TOP wage didnt raise, as much as the bottom…hmmm! so WHO lost money.
    Standard practice in the STORE I worked at…Hire: Single income Females with dependant.=Unmarried female with child..WHY?? because they cant go on strike.
    sence the 90’s, Many comapnies have found a NEET LOOP HOLE…Keep them PART TIME, then they DONT COUNT.. No benefits, and they dont pay as much to the STATE, and if they QUIT/fired they DONT GET BENEFITS..

  21. Mr. H. Fusion says:

    re 19, fusion, you ignorant slut.

    Damn !!! I’ve been outed !!!


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