United States v. International Business Machines Corp., 517 U.S. 843, 39 (1996)

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Cite as: 517 U. S. 843 (1996)

Kennedy, J., dissenting

domestic insurer for the inland leg of a shipment is not an

effective instrument for taxing export goods.

I would uphold § 4371 as applied to IBM because the statute imposes a tax on a distinct export-related service and is not a proxy for a tax on the exports themselves. The Court, in my view, makes a serious mistake in assuming the opposite and reaching the question whether a nondiscriminatory tax on goods violates the Export Clause. I would reverse the judgment of the Court of Appeals for the Federal Circuit.

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