Current economic climate nationwide and locally

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Given the current economic climate nationwide and locally, the state of Delmarva would like to impose a higher tax on out-of-state companies doing business in the state than it imposes on in-state companies. The reason behind the legislature’s enactment of this law is to protect the local firms from out-of-state competition because they are losing local business, which is affecting the state’s economy.

Is this law legal, or is it a violation of equal protection for a state to impose? What legal standards could the court apply in evaluating the constitutionality of a law and which would apply in this instance? Explain.     

Reference no: EM131008000

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