12. Tax & Regulation Immunities

Question 1

What is required for Federal Government to tax/regulate State Governments?

Answer 1

Affects BOTH public + private sectors => Regulation
- Same terms

Affects BOTH public + private sectors => Tax (NOT direct)

1) Citizen pays tax to Company
2) Company pays tax to Fed Gov
3) Geographically uniform in ALL states where taxed (NOT ALL states)

Affects public sector => Conditioning grant of money

1) Clearly expressed relation
2) Rationally related to federal program
3) NOT unduly coercive

Affects public sector => Prevent violation of civil liberties

NOT commandeer in sovereign capacity (10A)

Question 2

What is required for State Government to tax/regulate Federal Governments?

Answer 2

Congress’ consent

NO Congress’ consent

1) NOT discriminatory
2) NOT direct
3) NOT unreasonably burdensome

NOT regulate Federal Government’s performance of federal function (enumerated powers)

Question 3

What type of liquor regulation (21A) can Congress impose towards states?

Answer 3

Condition grant of money

- Highway funds for states with minimum drinking age below 21