Under the Due Process Clause, in order for a state to tax out-of-state individuals, there must be a(n) __________ between a state and the person taxed.
A. contract
B. minimum contact
C. long-term relationship
D. agreement to tax
Is it A?
agreement to tax
No, it is not choice A. The correct answer is B, minimum contact.
To understand why choice B is the correct answer, let's break down the question. The question is asking about the requirements for a state to tax individuals from another state under the Due Process Clause. The Due Process Clause is a provision in the United States Constitution that protects individuals from being deprived of life, liberty, or property without due process of law.
In the context of taxation, the Due Process Clause requires that there must be a minimum level of contact, or connection, between the state and the individual being taxed. This concept is known as "minimum contact." In other words, the state can only tax individuals from another state if there is some kind of meaningful connection between that individual and the state.
This requirement of minimum contact is based on the principle of fairness and prevents states from taxing individuals arbitrarily or without a legitimate basis. It ensures that individuals are not subject to taxation by states where they have no significant presence or activities.
Therefore, choice B, minimum contact, is the correct answer.