March 2006. In a landmark decision issued on September 2, 2004, the U.S. Court of Appeals for the Sixth Circuit ruled that the State of Ohio’s investment tax credit violated the Commerce Clause of the U.S. Constitution.  Rather than immediately appealing this decision to the US Supreme Court, DaimlerChrysler asked the Sixth Circuit to take the unusual step of rehearing the the case en banc.

The Sixth Circuit subsequently declined this request and DaimlerChrysler then asked the Supreme Court to hear its appeal of the Sixth Circuit’s decision. That request was granted and DaimlerChrysler et al. filed their briefs with the Supreme Court on December 5, 2005.  The plaintiffs/respondents filed their briefs by January 23, 2006. The Fiscal Policy Institute was among the various organizations that filed amicus briefs with the Supreme Court in this case.

Oral arguments were heard by the Supreme Court on march 1, 2006.  If the Sixth Circuit’s decision is upheld by the Supreme Court, it would serve to substantially de-escalate the current economic war among the states; in effect, serving to save the states from themselves.  For a general discussion of this issue see Ideas for Ending (or, At Least, De-escalating) the Economic War Among the States, a paper presented by Frank Mauro at a 2003 symposium on the Economic War Among the States co-sponsored by FPI and Good Jobs First.