The concept of federalism should be fairly straightforward: states regulate within their own borders, and the federal government handles interstate issues. But while most states have seen their reach exceed their grasp from time to time, California is the kid in the corner of the class with the dunce cap on. Once again, the Golden State’s inability to stop itself from reaching across its borders is rearing its ugly head — but this time, the Supreme Court has a chance to put a stop to it.
California’s extra jurisdictional power-grabs are starting to add up. Sometimes it concerns taxes, such as the state’s attempts to apply its income tax to out-of-state businesses or force investors with the most tangential relationship to a California business to pay a “doing business” tax. Other times it involves regulations, like California’s sweeping consumer privacy legislation or auto emissions standards. In all these cases, California took advantage of its status as the largest state economy in the country to effectively impose national law from Sacramento.
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