This Day in Legal History: Abraham Lincoln Inaugurated On March 4, 1861, Abraham Lincoln was inaugurated as the 16th president of the United States, taking office at a time of immense national turmoil. Seven Southern states had already seceded from the Union, and the country teetered on the brink of civil war. In his inaugural address, Lincoln struck a careful balance between firmness and conciliation, stating that while he had no intention to interfere with slavery where it existed, he would also not allow the Union to be dissolved. He appealed to the South’s “better angels” and warned that secession was unlawful, emphasizing that the Constitution was designed to create “a more perfect Union.” This speech set the tone for a presidency marked by Lincoln’s deep empathy for the downtrodden and his capacity for personal growth. Often celebrated for his moral clarity, Lincoln was also a leader willing to change his mind when confronted with new information. As the Civil War progressed, his views on slavery evolved, culminating in the Emancipation Proclamation in 1863. He once said, “I shall adopt new views as fast as they shall appear to be true views,” an acknowledgment of his willingness to adapt when justice demanded it. This intellectual humility was one of his greatest strengths, allowing him to navigate the unprecedented crisis before him. His presidency, which began on this day, would redefine the nation’s understanding of freedom, democracy, and leadership. Lincoln’s presidency saw the transformation of a man as much as a nation. When he first took office, he publicly questioned the intellectual equality of Black people and initially supported only limited measures to restrict slavery’s expansion. However, as the war unfolded and he engaged with Black leaders like Frederick Douglass, Lincoln’s views evolved dramatically. By the end of the conflict, he not only issued the Emancipation Proclamation but also argued for Black suffrage, stating in his final speech that he believed Black men deserved the right to vote. He also expressed openness to women’s suffrage, a radical position for the time. That April 11, 1865, speech, in which he publicly called for Black enfranchisement, enraged John Wilkes Booth, who declared, “That is the last speech he will ever make!” Three days later, Booth made good on his threat, assassinating Lincoln at Ford’s Theatre. Lincoln’s first inauguration marked the beginning of a journey that would not only reshape his own beliefs but also alter the course of American history—at the cost of his life and those of 400,000 of his fellow Americans. Immigrant rights groups have filed a lawsuit challenging the Trump administration’s decision to end Temporary Protected Status (TPS) for Haitian and Venezuelan migrants. The lawsuit, brought in Boston federal court, opposes Homeland Security Secretary Kristi Noem’s move to accelerate the expiration of deportation protections and work permits for 521,000 Haitians by August. This reverses the Biden administration’s previous extension of TPS for Haiti through February 2026. A similar decision was made for Venezuelan TPS recipients, with protections ending as early as April 2 for 348,000 individuals, a move already facing separate legal challenges. The lawsuit, filed by advocacy groups and individual migrants, argues that DHS lacked the authority to revoke an existing TPS extension and acted based on racial bias and political motivations. It cites past disparaging remarks by Trump about Haitian and Venezuelan immigrants as evidence of discrimination, alleging violations of the Fifth Amendment’s equal protection guarantees. The Department of Homeland Security has not yet responded. By way of brief background, the lawsuit claims the administration’s actions violate the Fifth Amendment’s guarantee of equal protection. While the Fourteenth Amendment explicitly provides equal protection against state discrimination, the Fifth Amendment has been interpreted to extend similar protections against federal government actions. Plaintiffs argue that the abrupt termination of TPS disproportionately harms Haitian and Venezuelan migrants and is driven by racial and ethnic bias rather than lawful considerations. Lawsuit challenges Trump's end to Haitian, Venezuelan deportation protections | Reuters Kraken announced that the U.S. Securities and Exchange Commission (SEC) has agreed in principle to dismiss its lawsuit accusing the cryptocurrency exchange of operating as an unregistered securities exchange. The dismissal, which comes with no admission of wrongdoing, penalties, or required business changes, is with prejudice, preventing the SEC from refiling the case. Kraken criticized the lawsuit as a politically motivated effort by the Biden administration that hindered innovation. The SEC, which had sued Kraken in 2023 under former Chair Gary Gensler’s leadership, has shifted its approach to crypto regulation since Trump’s return to office. Recently, the agency also dropped a similar case against Coinbase and is considering settling a civil fraud case against Justin Sun. The lawsuit had accused Kraken of facilitating crypto trades without proper regulatory compliance, but the company maintained that crypto assets do not fall under traditional securities laws.In legal terms, a dismissal with prejudice means the case is permanently closed and cannot be refiled. This is significant for Kraken because it ensures the SEC cannot bring the same claims against the company in the future. This type of dismissal often indicates that the plaintiff (in this case, the SEC) has decided not to pursue the matter further due to legal weaknesses or shifting priorities. Kraken says SEC to dismiss lawsuit | Reuters My column for Bloomberg Tax this week focuses on the Multistate Tax Commission’s (MTC) proposed rule aimed at simplifying tax compliance for mobile workers. While the proposal is a step in the right direction—creating a safe harbor for those working in nonresident states for 20 days or fewer—it doesn’t go far enough to address the real burdens faced by workers and businesses. To make the rule truly effective, I argue that three key modifications are needed: increasing the safe harbor threshold to 30 days, implementing an income-based sliding scale, and eliminating arbitrary carve-outs for certain high-income professionals. Currently, 41 states impose income tax on nonresidents, with some—like Arkansas and Delaware—triggering tax obligations after just one day of work. This creates a compliance nightmare for mobile workers, who may have to file multiple state tax returns for short business trips. The MTC’s 20-day threshold is an improvement, but expanding it to 30 days would better align with existing state policies and recommendations from tax advocacy groups. Additionally, the MTC’s one-size-fits-all approach fails to differentiate between income levels. A sales rep earning $50,000 a year and a hedge fund manager making $5 million shouldn’t be treated the same. A sliding scale—offering a longer grace period for lower-income earners while maintaining stricter thresholds for high-income, highly mobile workers—would make compliance fairer and more practical. Pegging the income thresholds to inflation would further ensure middle-class workers aren’t disproportionately impacted over time. Finally, the proposal’s exclusion of professional athletes, entertainers, and undefined “persons of prominence” is problematic. These individuals are denied the safe harbor, while a high-earning executive or consultant would benefit from it. The distinction isn’t based on income but on profession, creating an arbitrary and inconsistent standard. If fairness and clarity are the goals, the MTC should remove these exceptions. With states actively debating mobile workforce tax reforms and Congress failing to pass a federal solution for nearly two decades, now is the time to get this right. Expanding the threshold, implementing an income-based scale, and removing unfair carve-outs would make the rule more equitable and increase the likelihood of state adoption. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe
