The Takings Clause

Apr 13, 2009

Yesterday, the Washington Post carried an op/ed by George Will condemning a radical legal decision by the Illinois Supreme Court that allows the government to transfer income from a business to other projects, in violation of the Constitution's "Takings Clause." Will rightly observed that the Illinois Supreme Court's decision invites all sorts of political mischief, including ‘predatory taxation' – schemes that take money from disfavored businesses and transfer that money to politicians' favored businesses.

The National Chamber Litigation Center recently urged the U.S. Supreme Court to strike down the Illinois decision. NCLC argued that the Illinois court got the law wrong when it held that the U.S. Constitution's Takings Clause applies only when a government takes land, but not when it takes money. If the Illinois decision is allowed to stand, NCLC warned the high court, state and local governments will be tempted to mitigate their recent budget shortfalls by expanding so-called ‘regulatory takings.' The case is Empress Casino Joliet Corp., et al. v. Giannoulias, et al. You can check out the Chamber's brief on NCLC's website.

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