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Corporate Subsidies

Chris has the skinny on the Supreme Court taking the case of DaimlerChrysler Corp. v. Cuno:

The Cuno case could change all that. A group of Ohio taxpayers challenged a multi-million deal to lure DaimlerChysler, who promised to build a Jeep plant in Toledo. The plaintiffs challenged that the subsidies were a violation of Commerce Clause, which protects “free trade between the states” (since the goal of incentive deals is to keep plants from opening elsewhere). The lower court shot down the challenge, but on appeal the 6th U.S. Circuit Court ruled against DaimlerChrysler and the subsidies last October.

Powerful business interests quickly sprung into action, with the U.S. Chamber of Commerce and several leading corporations filing supportive briefs for DaimlerChrysler’s request that the Supreme Court overturn the 6th Circuit Court’s decision. The Supremes agreed, taking on Cuno as one of just 11 cases they’ll consider in their new term starting Monday

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