In: Operations Management
The Supreme Court reviewed a tax issued by the state of Alabama on a federally incorporated insurance organization. The Court found that if a state had the power to levy a tax on a federally incorporated institution, then the state had the power to destroy the federal institution. This would make the states superior to the federal government. Hence, the Court held that Alabama's tax on the insurance organization was unconstitutional. Which clause in the Constitution supports the act of the Court?
Supremacy Clause |
Adminstrative Procedures Act |
The 14th & 5th Amendments |
Commerce Clause |
Contract Clause |
Supremacy Clause
The clause 2 in Artcle VI of the US constitution made it clear that the Federal Law is the authority and the States have to abide by the same and there is no way by which styate laws will be given priority.