Via No Left Turns:
Now here’s an interesting question: The "emoluments" clause of Article I of the Constitution would seem to prohibit the appointment of Hillary Clinton to Obama’s cabinet because she is a sitting senator. Eugene Volokh explains.
Yes, it has been done before (Lloyd Bentsen under Clinton, William Saxbe under Ford), but it was probably unconstitutional then as now. Could this all be a ruse by Obama to flatter Hillary before having, reluctantly, to deny her the job?
I probably wouldn't go that route with Hillary if I were Obama. After all, she could always make him sweat a little by drawing attention to this pesky little situation.
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