Question

The federal clause most frequently providing the basis for state taxation disputes related to the states' power to tax out-of-state individuals and entities is the: Group of answer choices 1. Commerce and Due Process Clause 2. Legal Perspective Clause 3. Supremacy Clause 4. Federal Clause

Answer 1

1) Commerce and Due Process Clause

Step-by-step explanation:

The Commerce Clause is not a law that limits how states can regulate commerce, but a power assigned to Congress so that it can regulate interstate commerce. The Dormant Commerce Clause prohibits states from passing legislation that regulates interstate commerce or international commerce, since only Congress has the power to do so. The dormant clause usually affects legislation that discriminates against out of state businesses in favor of domestic businesses, but if the laws affects equally both domestic and out of state businesses, then there is usually no problem with it.

The Due Process Clause states that government entities must respect all the legal rights of a person or a legal entity (e.g. corporation). It prohibits that any government (federal, state or local) deprives a person of their life, liberty, or property without a due process (the property part applies to legal entities).