4.7 Equal Protection Clause The state of Alabama enacted a statute that imposed

Question

4.7 Equal Protection Clause The state of Alabama enacted a statute that imposed a tax on premiums earned by insurance companies. The statute imposed a 1 percent tax on domestic insurance companies (i.e., insurance companies that were incorporated in Alabama and had their principal office in the state). The statute imposed a 4 percent tax on the premiums earned by out-of-state insurance companies that sold insurance in Alabama. Out-of-state insurance companies could reduce the premium tax by 1 percent by investing at least 10 percent of their assets in Alabama. Domestic insurance companies did not have to invest any of their assets in Alabama. Metropolitan Life Insurance Company, an out-of-state insurance company, sued the state of Alabama, alleging that the Alabama statute violated the Equal Protection Clause of the U.S. Constitution. Who wins and why? Metropolitan Life Insurance Co. v. Ward, Commissioner of Insurance of Alabama, 470 U.S. 869, 105 S.Ct. 1676, 84 L.Ed.2d 751, Web 1985 U.S. Lexis 80 (Supreme Court of the United States)

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Explanation / Answer

Alabama only wins in this case. because here they are treating equal and fair manner only, but here the base is domestic or international. if you are an US citizen and US business firm, you treats along with others as a whole. but when the business firm is not an US firm (foriegn firm), then you can not be treats as equal to the domestic players. so, in this file Alabama win

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