The Simple Message of Tolerance That Eludes President Trump

JOSEPH MARGULIES

Cornell law professor Joseph Margulies calls upon President Trump to condemn the rise of anti-Asian calumny and violence and contrasts Trump’s actions today with those of President George W. Bush after the September 11 attacks. Margulies points out that immediately after 9/11, President Bush defined national identity in the language of equality and tolerance, stressing that Muslims and Arab-Americans were not the enemy.

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The Framers Would Have Been Appalled but Unsurprised by the President’s Failure to Get the COVID-19 Crisis Under Control: They Would Tell Him to Get Moving Now

MARCI A. HAMILTON

Marci A. Hamilton, a professor at the University of Pennsylvania, criticizes the Trump administration’s failure to adequately handle the national coordination of efforts to get the COVID-19 crisis under control. Hamilton points out that the Framers of the Constitution anticipated that the country would face emergencies and intentionally consolidated power in a single President to make decisions to unify and protect the nation.

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Hegar v. American Multi-Cinema, Inc.

Docket: 17-0464

Opinion Date: April 3, 2020

Judge: Busby

Areas of Law: Business Law, Tax Law

The Supreme Court reversed the decision of the court of appeals affirming the judgment of the trial court concluding that Tex. Tax Code 171.1012 permitted a movie theater to subtract exhibition costs as cost of goods sold, holding that film exhibitions are not tangible personal property that is sold, and therefore, the theater was not entitled to include exhibition-related costs in its cost of goods sold. The Comptroller disallowed the movie theater's subtraction of exhibition costs in calculating its franchise tax liability for 2008 and 2009. The theater paid the additional franchise taxes requested by the Comptroller and sued to recover the disputed amount, arguing that its exhibition costs were property subtracted as cost of goods sold (COGS). The trial court concluded that the theater's film exhibitions were tangible personal property and thus goods for sale in the ordinary course of the theater's business under section 171.1012. The court of appeals affirmed. The Supreme Court reversed, holding that section 171.1012 did not permit the movie theater to subtract is exhibition costs as COGS because no tangible personal property was transferred through the film exhibitions.

Hegar v. Gulf Copper & Manufacturing Corp.

Docket: 17-0894

Opinion Date: April 3, 2020

Judge: Debra Lehrmann

Areas of Law: Business Law, Tax Law

In this dispute over the amount of franchise tax owed by a taxpayer the Supreme Court reversed in part the judgment of the court of appeals reversing in part the trial court's judgment for the taxpayer, holding that, with respect to the taxpayer's inclusion of certain costs in its "cost of goods sold" (COGS) subtraction, the calculation method accepted by the trial court was improper, and the taxpayer was not entitled to include the costs in calculating its COGS subtraction. The Comptroller concluded that Gulf Copper and Manufacturing Corporation paid an insufficient amount of franchise taxes for the 2009 year. At issue was whether Gulf Copper could exclude certain payments from its revenue under Texas Tax Code 171.1011(g)(3) and include certain costs in its COGS subtraction under Texas Tax Code 171.1012. Gulf Copper paid additional taxes and sued to recover the disputed amount. The trial court rendered judgment in favor of Gulf Copper. The court of appeals reversed in part. The Supreme Court reversed in part, holding (1) the Comptroller incorrectly disallowed the revenue exclusion; (2) with regard to the COGS subtraction, the calculation method accepted by the trial court was improper; and (3) the taxpayer was not entitled to include costs under subsection 171.1012(i) in calculating its COGS subtraction.

Sunstate Equipment Co. v. Hegar

Docket: 17-0444

Opinion Date: April 3, 2020

Judge: Paul W. Green

Areas of Law: Business Law, Tax Law

The Supreme Court affirmed the judgment of the court of appeals affirming the Texas Comptroller's audit of Sunstate Equipment, a heavy construction equipment renal company, on the grounds that Sunstate was not entitled to subtract certain delivery and pick-up costs as cost of goods sold (COGS) under Tex. Tax Code 171.1012, holding that Sunstate was not entitled to the subtraction it claimed under either section 171.1012(k-1) nor section 171.1012(i). After the Comptroller assessed deficiencies, penalties and interest totaling $140,495 Sunstate brought suit for a refund. The district court ordered a full refund of the amount paid, including interest. The court of appeals reversed, concluding that Sunstate was not entitled to subtract costs under section 171.1012(k-1) and that section 171.1012(i) did not independently authorize the cost subtractions. The Supreme Court affirmed, holding that neither statutory provision authorized Sunstate to subtract its delivery and pick-up costs as COGS.