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Constitutional Law Keyed to Farber
Clinton v. City of New York
Citation:
524 U.S. 417 (1998)Facts
The Line Item Veto Act gave the President authority to cancel certain spending and tax benefit measures after he has signed them into law. The President’s cancellation under the Act would take effect when the special message notifying Congress of the cancellation was received in the House and Senate. The Act also established expedited procedures in both Houses for the consideration of disapproval bills. Appellees challenged two of President Clinton’s exercises of the cancellation power under the Line Item Veto Act. First, he canceled a provision in the Balanced Budget Act of 1997 that gave New York preferential treatment under Medicaid. Second, the President canceled a tax provision that allowed owners of certain food processors to defer paying tax on the gain from the sale of their stock. Because few taxpayers could take advantage of the tax expenditure, it was a limited tax benefit eligible for cancellation.
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