The Fourteenth Amendment’s Due Process Clause restricts a state’s authority to tax out-of-state individuals unless:
A. there is a “minimum contact” between a state and the person taxed.
B. the person’s parents were born in the state.
C. the state obtains federal approval for the tax in advance.
D. there is an international component to the transaction involved.
The correct answer is A. The Fourteenth Amendment’s Due Process Clause restricts a state’s authority to tax out-of-state individuals unless there is a "minimum contact" between a state and the person taxed.
To get to the correct answer, you can start by understanding what the Fourteenth Amendment's Due Process Clause is. The Due Process Clause is a constitutional provision that states that no state can deprive any person of life, liberty, or property without due process of law.
Next, you need to know what it means for a state to tax out-of-state individuals. This refers to the power of a state to impose taxes on individuals who are not residents or citizens of that state, but who engage in certain activities or have specific connections with the state.
Now, you can evaluate the options:
A. The option states that the state's authority to tax out-of-state individuals is restricted unless there is a "minimum contact" between a state and the person taxed. This aligns with the concept of minimum contacts, which means that a state can only assert jurisdiction over someone from another state if they have a sufficient connection or contact with that state. Therefore, option A is the correct answer.
B. The option states that the person's parents were born in the state. This condition does not relate to the Fourteenth Amendment's Due Process Clause or the restriction on the state's authority to tax out-of-state individuals.
C. The option states that the state needs federal approval for the tax in advance. While there may be specific situations where federal approval is required for state taxes, it is not a general requirement imposed by the Fourteenth Amendment's Due Process Clause.
D. The option states that there must be an international component to the transaction involved. The question focuses on the Fourteenth Amendment's Due Process Clause and taxation of out-of-state individuals, so the requirement of an international component is not applicable.
In conclusion, by considering the concept of minimum contacts and evaluating the options, it becomes clear that option A is the correct answer.