References. U. S. Constitution Annotated, 1923-Government Print-' ing Office Federal Statutes Annotated United States Compiled Statutes Cooley on Taxation Willoughby on the Constitution Federal Tax Services (a) Commerce Clearing House (c) Corporation Trust Company Treasury Decisions Bulletins Regulations Federal Taxes-Black Federal Taxes-Holmes Income Tax Procedure-Montgomery In giving this course no preference is indicated as to reference books to be used. Sufficient information can be secured from a number of the various references listed. A careful explanation is to be made of the different Government publications, and students should secure as many as possible of these for reference and current reading. The course is briefly outlined under the following subject heads: (1) Constitutional law governing federal taxing powers. (2) History of the Federal Revenue System. (3) Analysis of Revenue Acts enacted subsequent and pursuant to the Sixteenth Amendment to the United States Constitution. The outline will follow in the order named above, the general subject heads, the purpose of the outline being to convey an idea of the scope of the course, and to lay out for the student a plan of research. I. Constitutional Law Governing Federal Taxing Powers. In connection with the study of this subject it is suggested that the student consult the following: (a) Willoughby on the Constitution (b) Cooley on Taxation (c) Annotated Federal Statutes (d) U. S. Constitution, Annotated 1923-Government Printing Office 1. Taxes-Nature and Kind: (a) Definition: Cooley on Taxation Loan Assn. vs. Topeka, 20 Wall. 664 (b) Taxation an incident of sovereignty: (c) Classification of taxes: 1. Direct taxes; levied upon property, persons, business or income of those who pay. 2. Indirect taxes; levied upon commodities before they reach the consumers and paid by those on whom they ultimately fall, who pay not as taxes but as part of market price of commodity. Hylton vs. U. S., 3 Dall. 171 Springer vs. U. S., 102 U. S. 586 Farmers Loan & Trust Co. vs. Pollock, 157 U. S. 429, 158 U. S. 601 Knowlton vs. Moore, 178 U. S. 41 Patton vs. Brady, 184 U. S. 608 Brushaber vs. U. P. R. Co., 240 U. S. 1 Veazie Bank vs. Fenno, 8 Wall. 533 2. Nature of Taxing Power Legislative: (a) U. S. Constitution, Act I, Sec. 8, Cl. 1 McCullough vs. Maryland, 4 Wheat. 316 (b) Federal Regulations under Guise of Tax: Hill vs. Wallace, 259 U. S. 44 Brown vs. Thorne, 260 U. S. Lippe vs. Lederer, 259 U. S. Regal Drug Co. vs. Wardell, 260 U. S. 386 Bailey vs. Drexel Furn. Co., 259 U. S. 20 (c) Taxation of Governmental Agencies: Osborn vs. Bank, 9 Wheat. 738 Smith vs. Kansas City Title Co., 255 U. S. 180 (d) Due Process of Law as Related to Taxation: Davidson vs. New Orleans, 96 U. S. 97 (e) Taxation Must Be for Public Purpose: 3. Limitation of Taxing Power: (One exception and two qualifications). (a) Export Duties: U. S. Constitution, Act I, Sec. 9, Cl. 5 Hylton vs. U. S. 3 Dall. 171 N. Y., etc., vs. Hvoslef, 237 U. S. 1 Peck vs. Lowe, 247 U. S. 165 National Paper & Type Co. vs. Bowers, 266 (b) Direct Taxes Apportioned: U. S. Constitution, Act I, Sec. 9, Cl. 4 Farmers Loan & Trust vs. Pollock, 157 U. S. 425, 158 U. S. 601 Hylton vs. U. S., 3 Dall. 171 Veazie Bank vs. Fenno, 8 Wall. 547 Springer vs. U. S., 102 U. S. 602 License Tax Cases, 5 Wall. 471 (c) Indirect Taxes Uniform: U. S. Constitution, Act I, Sec. 8, Cl. 1 LaBelle Iron Works vs. U. S., 256 U. S. 392 4. Sixteenth Amendment to United States Constitution: (Income Tax Amendment-Passed July 9, 1909-Ratified by proclamation of Secretary of State February 25, 1913.) The effect of this amendment is considered in connection with the cases under "Definiton of Income." However, the followng leading case is considered under the heading of the amendment-being the leading case on the constitutionality of the first income Tax Act passed under the amendment. Brushaber vs. U. P. R. Co., 240 U. S. 1 II. History of Federal Revenue System. It is the purpose of this course to sketch briefly the history of the earlier revenue acts to give the student the historical background of the present revenue system. It will not be possible, however, to make a detail study of the Acts prior to the Revenue Act of 1913. Certain leading cases under the earlier Acts will be studied in connection with the history of these Acts. (a) Civil War Income Tax Acts. Springer vs. U. S., 102 U. S. 602 (b) Act of August, 28, 1894. Farmers Loan & Trust Co. vs. Pollock, 158 U. S. 601 (c) Act of June 13, 1898-Spanish War Revenue Act. (d) Act of August 5, 1909–Payne-Aldrich Bill (or Corporation Excise Tax Act. This Act provided an excise tax of 1 per cent with respect to the carrying on or doing business by corporations, joint stock companies and associations-the tax being measured by 1 per cent of the net income of the taxpayer. The decided cases under this Act bearing on the question of what constitutes income are important in connection with the consideration of what constitutes income under the later Acts. The cases under this Act bearing on what constitutes carrying on or doing business are authority on the same question under the present Capital Stock Tax Act. The following leading cases will be considered under this Act: Doyle vs. Mitchell Bros., 247 U. S. 179 McCoach vs. Minehill R. R. Co., 228 U. S. 295 Emery Bird Thayer Realty Co. vs. U. S., 237 |