Tax

Question 1

Who has the power to regulate foreign commerce?

Answer 1

That lies exclusively with Congress.

Question 2

When will a non-discriminatory tax be found valid?

Answer 2

A nondiscriminatory tax will be valid if the following requirements are met:

a. Substantial Nexus: the tax must apply to an activity having a substantial nexus to the taxing state; there must be significant or substantial activity within the taxing state.
b. Fair Apportionment: the tax must be fairly apportioned to a rational formula. However, the taxpayer has the burden of proving unfair apportionment.
c. Fair Relationship: the tax must be fairly related to the services or benefits provided by the state.