Taxation - Clear Skies for Federal Obligations under Nebraska's Corporate Franchise Tax - State Ex Rel Douglas v. Karnes
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Authors
Markwardt, Paul W.
Issue Date
1985
Volume
18
Issue
Type
Journal Article
Language
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Abstract
INTRODUCTION|The landmark decision of McCulloch v. Maryland established the doctrine of federal immunity from state taxation. Recognizing "[t]hat the power to tax involves the power to destroy," the United States Supreme Court determined that the states' ability to tax constitutionally the instrumentalities of the federal government would nullify the supremacy clause of the United States Constitution. The Supreme Court later expanded the immunity doctrine in Weston v. City Council of Charleston. The Charleston City Council had imposed a tax upon the interest earned on United States bonds. Viewing the tax upon the interest as a tax upon the federal government's power to borrow money, the Court found the tax to be repugnant to the supremacy clause. Over one hundred fifty years later, the Nebraska Supreme Court revisited this historic principle in State ex rel. Douglas v. Karnes. Although McCulloch and Weston established an absolute doctrine of federal immunity s more recent Supreme Court decisions have limited the doctrine's breadth. The present doctrine prohibits a state from levying a tax directly upon the United States or a tax "the legal incidence of which falls on the Federal Government."...
Description
Citation
18 Creighton L. Rev. 557 (1984-1985)
Publisher
Creighton University School of Law