Fannie, Freddie Tax Ruling Violates Law, 8th Circ. Told

Law360, New York (December 4, 2013, 5:11 PM EST) -- A Minnesota district court brushed aside Swift County's argument that Congress cannot give preferential tax treatment to Fannie Mae and Freddie Mac without violating the Commerce Clause, the county said, claiming the trial court ignored U.S. Supreme Court precedent and obliterated the distinction between federal and state power.

“The issue of the outer limits [of congressional power] is of critical constitutional significance,” Swift County Treasurer Ronald A. Vadnais argued in his brief. “If Congress can exempt [Fannie and Freddie from] transfer taxes, Congress plainly could repeal...
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