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	<title>Comments on: Wooing cities with tax incentives</title>
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	<link>http://stevereads.com/weblog/2005/01/04/wooing-cities-with-tax-incentives/</link>
	<description>Books and policy from an endlessly curious perspective</description>
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		<title>By: Mr. Smith</title>
		<link>http://stevereads.com/weblog/2005/01/04/wooing-cities-with-tax-incentives/comment-page-1/#comment-3812</link>
		<dc:creator>Mr. Smith</dc:creator>
		<pubDate>Thu, 01 Jan 1970 00:00:00 +0000</pubDate>
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		<description>&lt;p&gt;&lt;p&gt;There are two major types of Commerce Clause cases in the courts: commerce clause and dormant commerce clause. The Dormant Commerce Clause is a doctrine that came about when the Court said &quot;Hell, If Congress has the authority to regulate commerce then that power is plenary! So, even if Congress has done nothing, we can&#039;t have States regulating or affecting commerce because that is exceeding their power.&quot; Regular Commerce Clause cases challenge a federal law for exceeding Congress&#039; authority to enact it. &lt;cite&gt;Kassel v. Consolidated Freightways&lt;/cite&gt; is the paradigmatic case for this. NB: The Commerce Clause doesn&#039;t &lt;cite&gt;justify&lt;/cite&gt; anything. It provides the &lt;cite&gt;authority&lt;/cite&gt; to act.&lt;/p&gt;&lt;p&gt;So, what does this case mean? Who knows. Commerce Clause jurisprudence is in a serious state of confusion ever since &lt;cite&gt;Lopez&lt;/cite&gt; and &lt;cite&gt;Morrisson&lt;/cite&gt;. I think you have to look at Rehnquist et al.&#039;s somewhat convoluted examination of the commerce clause and their notions of &quot;Federalism&quot; to get a sense of what&#039;s happening. It also resonates with their jurisprudence around congressional abridgment of state sovereign immunity under the 14th amendment. See &lt;cite&gt;Garrett&lt;/cite&gt;.&lt;/p&gt;&lt;p&gt;It seems the Courts are having trouble with aggregation and the tension between the population and the individual. Ultimately, I think the problem is being stuck with an 18th century notion of commerce and federalism when confronted with a complex interdependent national and global economy. I have read a few articles taking issue with these local tax credits under the WTO framework as well.&lt;/p&gt;&lt;p&gt;&lt;cite&gt;Wickard,&lt;/cite&gt; at 317 U.S. 111 (1942) is a nice counter-example of what commerce clause jurisprudence used to be.&lt;/p&gt;&lt;/p&gt;
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		<content:encoded><![CDATA[<p></p><p>There are two major types of Commerce Clause cases in the courts: commerce clause and dormant commerce clause. The Dormant Commerce Clause is a doctrine that came about when the Court said &#8220;Hell, If Congress has the authority to regulate commerce then that power is plenary! So, even if Congress has done nothing, we can&#8217;t have States regulating or affecting commerce because that is exceeding their power.&#8221; Regular Commerce Clause cases challenge a federal law for exceeding Congress&#8217; authority to enact it. <cite>Kassel v. Consolidated Freightways</cite> is the paradigmatic case for this. NB: The Commerce Clause doesn&#8217;t <cite>justify</cite> anything. It provides the <cite>authority</cite> to act.</p><p>So, what does this case mean? Who knows. Commerce Clause jurisprudence is in a serious state of confusion ever since <cite>Lopez</cite> and <cite>Morrisson</cite>. I think you have to look at Rehnquist et al.&#8217;s somewhat convoluted examination of the commerce clause and their notions of &#8220;Federalism&#8221; to get a sense of what&#8217;s happening. It also resonates with their jurisprudence around congressional abridgment of state sovereign immunity under the 14th amendment. See <cite>Garrett</cite>.</p><p>It seems the Courts are having trouble with aggregation and the tension between the population and the individual. Ultimately, I think the problem is being stuck with an 18th century notion of commerce and federalism when confronted with a complex interdependent national and global economy. I have read a few articles taking issue with these local tax credits under the WTO framework as well.</p><p><cite>Wickard,</cite> at 317 U.S. 111 (1942) is a nice counter-example of what commerce clause jurisprudence used to be.</p>
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		<title>By: Mr. Smith</title>
		<link>http://stevereads.com/weblog/2005/01/04/wooing-cities-with-tax-incentives/comment-page-1/#comment-3813</link>
		<dc:creator>Mr. Smith</dc:creator>
		<pubDate>Thu, 01 Jan 1970 00:00:00 +0000</pubDate>
		<guid isPermaLink="false">http://stevereads.com/weblog/economics_and_statistics/wooing_cities_with_tax_incentives.html#comment-3813</guid>
		<description> &lt;p&gt;Oops.. &lt;cite&gt;Kassell&lt;/cite&gt; is the paradigmatic case for Dormant Commerce Clause cases.&lt;/p&gt;
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		<content:encoded><![CDATA[ <p>Oops.. <cite>Kassell</cite> is the paradigmatic case for Dormant Commerce Clause cases.</p>
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		<title>By: mrz</title>
		<link>http://stevereads.com/weblog/2005/01/04/wooing-cities-with-tax-incentives/comment-page-1/#comment-3814</link>
		<dc:creator>mrz</dc:creator>
		<pubDate>Thu, 01 Jan 1970 00:00:00 +0000</pubDate>
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		<description> &lt;p&gt;This seems to impinge on interstate commerce in that companies may move from state to state. So the federal government should have some say in regulating this activity.&lt;/p&gt;

&lt;p&gt;&lt;p&gt;Though, I have to agree: what activity &lt;em&gt;doesn&#039;t&lt;/em&gt; have some effect on interstate commerce in some tiny way? It would seem to me that the government needs good leeway to actually enable/regulate commerce but at the same time they might need better limits set on what &quot;commerce&quot; actually is.&lt;/p&gt;
&lt;p&gt;I seem to recall some case about people growing tomatoes in their own back yard for their own consumption as falling under the commerce clause. Frankly, I think that&#039;s taking things a little too far but how can such silly cases be separated from &quot;good&quot; applications of the power to regulate interstate commerce? Are we running into the wall of &quot;for any set of laws there will be some unavoidable rediculous cases&quot; that you have mentioned to me before?&lt;/p&gt;&lt;/p&gt;
</description>
		<content:encoded><![CDATA[ <p>This seems to impinge on interstate commerce in that companies may move from state to state. So the federal government should have some say in regulating this activity.</p>

<p></p><p>Though, I have to agree: what activity <em>doesn&#8217;t</em> have some effect on interstate commerce in some tiny way? It would seem to me that the government needs good leeway to actually enable/regulate commerce but at the same time they might need better limits set on what &#8220;commerce&#8221; actually is.</p>
<p>I seem to recall some case about people growing tomatoes in their own back yard for their own consumption as falling under the commerce clause. Frankly, I think that&#8217;s taking things a little too far but how can such silly cases be separated from &#8220;good&#8221; applications of the power to regulate interstate commerce? Are we running into the wall of &#8220;for any set of laws there will be some unavoidable rediculous cases&#8221; that you have mentioned to me before?</p>
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		<title>By: Mr.Smith</title>
		<link>http://stevereads.com/weblog/2005/01/04/wooing-cities-with-tax-incentives/comment-page-1/#comment-3815</link>
		<dc:creator>Mr.Smith</dc:creator>
		<pubDate>Thu, 01 Jan 1970 00:00:00 +0000</pubDate>
		<guid isPermaLink="false">http://stevereads.com/weblog/economics_and_statistics/wooing_cities_with_tax_incentives.html#comment-3815</guid>
		<description> &lt;p&gt;I believe the current judicial standard for Congressional authority is &quot;substantial effect&quot; although J. Breyer et al. prefer &quot;significant effect&quot; as the apporpriate test. MRZ refers to &lt;cite&gt;Wickard&lt;/cite&gt; where Mr. Filburn was growing winter wheat and ran afoul of FDR&#039;s Sec. of Agriculture and the New Deal.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[ <p>I believe the current judicial standard for Congressional authority is &#8220;substantial effect&#8221; although J. Breyer et al. prefer &#8220;significant effect&#8221; as the apporpriate test. MRZ refers to <cite>Wickard</cite> where Mr. Filburn was growing winter wheat and ran afoul of FDR&#8217;s Sec. of Agriculture and the New Deal.</p>
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