1568 in taxing the income of a non resident there is

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1568 In taxing the income of a non- resident, there is no denial of equal protection in limiting the de- duction of losses to those sustained within the state, although resi- dents are permitted to deduct all losses, wherever incurred. 1569 A retroactive statute imposing a graduated tax at rates different from those in the general income tax law, on dividends received in a prior year that were deductible from gross income under the law in ef- 1565 470 U.S. 869, 878 (1985). The vote was 5–4, with Justice Powell’s opinion for the Court joined by Chief Justice Burger and by Justices White, Blackmun, and Stevens. Justice O’Connor’s dissent was joined by Justices Brennan, Marshall, and Rehnquist. 1566 470 U.S. at 880. 1567 The first level of the Court’s “two-tiered” analysis of state statutes affecting commerce tests for virtual per se invalidity. “When a state statute directly regulates or discriminates against interstate commerce, or when its effect is to favor in-state economic interests over out-of-state interests, we have generally struck down the statute without further inquiry.” Brown-Forman Distillers Corp. v. New York State Liquor Auth., 476 U.S. 573, 579 (1986). 1568 F.S. Royster Guano Co. v. Virginia, 253 U.S. 412 (1920). See also Walters v. City of St. Louis, 347 U.S. 231 (1954), sustaining a municipal income tax imposed on gross wages of employed persons but only on net profits of the self-employed, of corporations, and of business enterprises. 1569 Shaffer v. Carter, 252 U.S. 37, 56, 57 (1920); Travis v. Yale & Towne Mfg. Co., 252 U.S. 60, 75, 76 (1920). 2119 AMENDMENT 14—RIGHTS GUARANTEED
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fect when they were received, does not violate the Equal Protection Clause. 1570 Inheritance Taxes. —There is no denial of equal protection in prescribing different treatment for lineal relations, collateral kin- dred and unrelated persons, or in increasing the proportionate bur- den of the tax progressively as the amount of the benefit in- creases. 1571 A tax on life estates where the remainder passes to lineal heirs is valid despite the exemption of life estates where the remain- der passes to collateral heirs. 1572 There is no arbitrary classifica- tion in taxing the transmission of property to a brother or sister, while exempting that to a son-in-law or daughter-in-law. 1573 Vested and contingent remainders may be treated differently. 1574 The ex- emption of property bequeathed to charitable or educational insti- tutions may be limited to those within the state. 1575 In computing the tax collectible from a nonresident decedent’s property within the state, a state may apply the pertinent rates to the whole estate wher- ever located and take that proportion thereof which the property within the state bears to the total; the fact that a greater tax may result than would be assessed on an equal amount of property if owned by a resident, does not invalidate the result.
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