Question

how did tax immunity affect the relationship between the United States v. Mexico case in 1982?

Answer 1

Answer - In the case law United States v. Mexico in 1982, the case conecrns the relationship between the three private parties and the united states. New Mexico imposes a gross receipt tax and a compensating use tax on those doing business within the state. Tax Immunity is appropirate only when state levy applies to the united states itself,or on agency or so closely connected to the government that the two cannot be viewed as separate entities. at least so far as the activity being taxed is concerned. Constitutional tax immunity finding therefore requires more than invocation of traditional agency norms and notions. Federal immunity form the tax cannot be conferred simply because the tax has an effect on the united states, or the earnings fall on the earnings of a contractor providing services to the government. And where the tax is levied on the use of the federal rpoperty in private hands or simply as the tax is paid with the government funds.

The courts decision in the tax immunity case have been more concerned with the preserving the delicate financial balamce between our co existing sovereingities. The issue here is that whether the contractors can actually be considered as entities independent of gthe united states, if yes then the tax on them cannot be viewed as tax on Unites states.