Tax Injunction Case

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Possible Supreme Court Outcomes for Internet Shopping and Railroads

In 2010, Colorado enacted a law that required out-of-state merchants to report transactions to their customers and to state tax authorities. (Liptak, 2014) Direct Marketing Association sued Colorado Department of Revenue Executive Director, Barbara Brohl, because they believe the law violates the Commerce Clause by discriminating against interstate commerce. A federal trial court agreed but the U.S. Court of Appeals for the Tenth Circuit did not agree but instead held that the Tax Injunction Act ousted the district court of authority to impose Colorado’s tax collection law. Does the Tax Injunction Act strip federal court of its authority over a law suit of non-taxpayers to impose an enforcement of …show more content…

646, 62 Stat. 932.) I could not find where Colorado’s reporting requirements enjoin, suspend, or restrain the assessment, levy, or collection of taxes. The reporting should take place before the collecting takes place, therefore I feel the court will answer, no. Since Colorado’s reporting law does not affect any of the Tax Injunction Act categories the federal court could hear the case.

As far as the railroad case in concerned, a trade group has challenged a federal law in which they feel gives Amtrak too much power over freight railroad companies. The U.S. Court of appeals for the District of Columbia Circuit ruled against the government because Congress had improperly delegated legislative authority to Amtrak. (Liptak, 2014) Currently Amtrak can play a role in setting performance standards. They can pressure companies that own rail lines to improve the routes for passenger trains. How much authority can Congress give to others to make

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