Look to Case Law to Decide Border Tax Credits’ Constitutionality

Several states bordering Canada provide tax credits for income taxes paid to Canadian provinces, which could potentially favor commerce with Canada over other countries and may violate the Constitution. Mike Puzyk and Paul Buonaguro, attorneys from our Tax and Benefits team, discuss how these tax policies may conflict with the federal government’s ability to regulate foreign trade, particularly in light of the Supreme Court’s Japan Line and Wynne decisions.