Chas. C. Steward Mach. Co. v. Davis
SCOTUS- 1937
Facts
- Social Security Act tax laid uniformly throughout the U.S. on employers of eight or more people.
- Challenge is that the relation of employment is one so essential to the pursuit of happiness that it may not be burdened with a tax.
Procedural History
- SCOTUS held that Social Security Act did not exceed Congress's authority to tax and spend.
Issues
- Does Congress have the power to enact a Social Security tax?
Holding/Rule
- Congress has the power to enact a Social Security tax.
Reasoning
- Natural rights such as right to employment for lawful gain is as much subject to taxation as rights of less importance.
- The subject matter of taxation open to the power of the Congress is as comprehensive as that open to the power of the states.
Dissent
Notes
