State of Michigan and Michigan Education Trust v. United States

*830RALPH B. GUY, Jr., Circuit Judge,

dissenting.

I respectfully dissent. In doing so, I hasten to add that this is a difficult case, and principled arguments can be marshalled on either side of this issue. The court starts out by stating that “while Congress could, if it wished, tax the investment income of state agencies such as the education trust, it has not chosen to do so.” My view is to the contrary. I believe that although Congress could exempt such income from taxation, it has not done so. I find some support for this position in the introduction of legislation in Congress in 1988 by U.S.…