Texarkansas Case Study

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In this case of United States v. Texarkansas we are here to discuss the laws passed in the state of Texarkansas in regards to the self-driving cars. Self-driving cars has become the newest technology and, according to witnesses in congressional hearings, testified that self-driving cars have a higher probability to reduce traffic fatalities, allow companies to ship goods more efficiently, and make commuting to work easier for most Americans. President Ronald Crump made the decision to pass a bill in order to promote this new technology and with that came 3 federal provisions: 1. The law allows taxpayers to subtract the amount they pay to be driven by a self-driving car service from their taxable income, which lowers the amount of income they …show more content…
The commerce clause, Article 1 Section 8, of the Constitution gives Congress the power to regulate commerce among the states. One would say that because of the fact that these laws are intrastate then commerce may not regulate; but that idea is struck down by the modern approach of the commerce clause. The modern approach to the commerce clause is commerce power that allows Congress to regulate and protect the channels of interstate commerce, the instrumentalities of interstate commerce, and those activities that substantially affect interstate commerce. In the Darby and Wickard cases this new approach came about. Both cases dealt with intrastate activities taking affect on interstate commerce. Justice Stone wrote in the majority opinion in Darby that the powers of Congress over interstate commerce is not just only to commerce that is among the states but it extends to intrastate activities that affects interstate commerce as well. In the language of McCulloch, in order for Congress to regulate interstate activities it has to be necessary and proper for it to regulate local activities. If Congress decides in the aggregate that local activities have some negative impact on interstate commerce, Congress may regulate. Texarkansas 's …show more content…
By taxing all collected fares on any car service that sells the new self-driving cars it is a form of discrimination. Only those car services will be taxed by the state and the services that sell manually operated vehicles will not be taxed. In Hunt v. Washington State Apple Advertising Commission and Heart of Atlanta Motel Inc. v. United States both cases demonstrate how discrimination affects interstate commerce. In the Hunt case, the state of North Carolina passed a law that all containers of apples shipped into their state must have a USDA grade or they will not accept the shipment. Chief Justice Burger struck down this law because the law placed an unreasonable burden on interstate commerce and discriminated against it. It is stressed that taxes cannot be discriminating. If a state wants to tax a company 's profits from a business transaction, the tax must be the same for all businesses. The state taxes imposed on these services and higher insurance could prevent people from buying or selling self-driving vehicles. A state does have the right to tax commerce within its borders but if it discriminates against or causes burden on interstate commerce it violates the commerce clause. Similar to the Hunt case the Heart of Atlanta case the court ruled Congress could outlaw discrimination in certain business open to the public because discrimination in places like hotels

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