Corporate welfare survives | Arkansas Blog

Monday, May 15, 2006

Corporate welfare survives

Posted By on Mon, May 15, 2006 at 1:18 PM

The U.S. Supreme Court today gave a victory to corporate welfare proponents by saying taxpayers didn't have standing to sue over tax breaks extended by Ohio to land an auto plant. That's bad. But the court sidestepped the core legal argument, that it's unconstitutional for states to give differing tax treatments to lure outside development.

This link gives the summary and some useful background on the issue. The lawyer challenging the corporate welfare said in part:

The effect of the Court's ruling is not to end our challenge or to uphold Ohio's discriminatory use of its tax system to steer business investment into the state. Rather, the decision simply sends us back to the Ohio state courts, where we began six years ago. We intend to pursue the case promptly and fully in that forum, whose rules for citizen standing are far more permissive than those in the federal courts. If the Ohio state courts follow the lead of the Sixth Circuit Court of Appeals and find Ohio's investment tax credit unconstitutional, then the case can come back to the Supreme Court for a nationally applicable ruling on the merits. And, in the meanwhile, similar cases are underway in the courts of several other states.

Please note that the usual suspects -- conservative Republicans who think only working stiffs should pay taxes -- won't necessarily be rising to applaud this decision. Reason: part of the motivation for the lawsuit wasn't the unconstitutional tax giveaway to favored corporations, but the fact that private property was condemned under the ruling so it could be turned over to a Jeep manufacturer. Yes, private-to-private condemnations, as authorized by Arkansas's TIF law, can happen. Yes, you can argue it's for the common good to create thousands of jobs by such means. But don't try to tell it to people who lost their houses.

Sign up for the Daily Update email

Comments (2)

Showing 1-2 of 2

Add a comment

Subscribe to this thread:
Showing 1-2 of 2

Add a comment

More by Max Brantley

Readers also liked…

  • A response to police arrests becomes a tutorial on race, class and policing in Little Rock

    John Walker, the 79-year-old civil rights lawyer, and his associate, Omavi Shukur, 29, a young lawyer devoted to criminal justice reform, talked to press this afternoon about their arrests Monday by Little Rock police for supposedly obstructing governmental operations in observing and attempting to film a routine police traffic stop. It was a tutorial on sharp views of race, class and governance in Little Rock.
    • Sep 29, 2016
  • Donald Trump declares war on Hillary Clinton's marriage

    Donald Trump gave a remarkable interview to the New York Times yesterday in which he declared open season on the marriage of Bill and Hillary Clinton and Bill Clinton's past infidelity. Seems like a loser, but I've been wrong before.
    • Oct 1, 2016
  • The inspiring Hillary Clinton

    Hillary Clinton's campaign for president illustrates again the double standard applied to women. Some writers get it. They even find the supposedly unlikable Clinton inspiring.
    • Oct 16, 2016

Most Viewed

Most Recent Comments


© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation