Kaestner Fails: The Way Forward
Forthcoming 11 William & Mary Business Law Review __ (2020)
32 Pages Posted: 13 Sep 2019 Last revised: 3 Dec 2019
Date Written: September 12, 2019
This past term, the Supreme Court applied the due process clause to prevent the states from closing down a tax strategy that employs out-of-state trusts. Many had hoped that the case would serve as a vehicle for the Court to overrule taxpayer-friendly precedents that make the strategy possible. But it failed. The question that emerges is whether the decision leaves the states with a path to address the strategy and thereby prevent it from being used to exacerbate issues of inequality. After examining the decision, this paper considers the options available to the states and then suggests a way forward.
JEL Classification: K34, K10, K11, K36, K19
Suggested Citation: Suggested Citation