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Helvering Vs. Gerhardt

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  • US Supreme Court
  • May 23, 1938

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  1. Willcuts Vs. Bunn US Supreme Court · Jan 05, 1931
  2. Pacific Co., Ltd. Vs. Johnson US Supreme Court · Apr 11, 1932
  3. U.S. 405 (1938) U.S. Supreme Court Helvering v. Gerhardt
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  4. U.S. 405 (1938) Helvering v. Gerhardt
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  5. itself with respect to its receipt of income or its other activities. P. 304 U. S. 424 . 4. Brush v. Commissioner
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  6. for the Second Circuit, 92 F.2d 999, Page 304 U. S. 411 affirmed without opinion on the authority of Brush v. Commissioner
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  7. Commissioner v. Ten
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  8. Eyck, 76 F.2d 515, and New York ex rel. Rogers v. Graves
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  9. to tax the other, or its instrumentalities. The doctrine that there is an implied limitation stems from McCulloch v. Maryland
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  10. invalid any form of state taxation adversely affecting the use or enjoyment of federal instrumentalities. Miller v. Milwaukee
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  11. Pacific Co., Ltd. v. Johnson
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  12. from the taxation of obligations of the United States as an interference with the borrowing power, Weston v. Charleston
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  13. levied upon the office of a captain of a revenue cutter, Dobbins v. Erie
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  14. subject to an implied restriction when applied to state instrumentalities was first decided in Collector v. Day
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  15. Wall. 78 U. S. 125 -126. We need not stop to inquire how far, as indicated in McCulloch v. Maryland
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  16. It is enough for present purposes that the state immunity from the national taxing power, when recognized in Collector v. Day
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  17. raised by implication, should be narrowly limited. One, as was pointed out by Chief Justice Marshall in McCulloch v. Maryland
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  18. supra, page 435-436, and Weston v. Charleston
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  19. is thrown upon the national government, with benefit only to a privileged class of taxpayers. See Metcalf & Eddy v. Mitchell
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  20. from the beginning, would become a ready means for striking down the taxing power of the nation. See South Carolina v. United
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  21. taxing power, this Court has refused to enlarge the immunity substantially beyond those limits marked out in Collector v. Day
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  22. supra. It has been sustained where, as in Collector v. Day
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  23. the attempt was to tax income received from the investments of a municipal subdivision of a state, United States v. Railroad
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  24. by a private investor from state bonds, and thus threaten impairment of the borrowing power of the state, Pollock v. Farmers'
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  25. Weston v. Charleston
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  26. sale to a municipal corporation of equipment for its Page 304 U. S. 418 police force, Indian Motocycle Co. v. United
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  27. S. 570 . But the Court has refused to extend the immunity to a state conducted liquor business, South Carolina v. United
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  28. Ohio v. Helvering
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  29. railway business taken over and operated by state officers as a means of effecting a local public policy. Helvering v. Powers
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  30. tax laid on the privilege of exercising corporate franchises granted by a state to public service companies. Flint v. Stone
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  31. the state treasury. The state itself was taxed for the privilege of carrying on the liquor business in South Carolina v. United
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  32. States, supra, and in Ohio v. Helvering
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  33. officer engaged in the management of a state-owned corporation operating a street railroad was sustained in Helvering v. Powers
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  34. protected from a tax which well may be substantially or entirely absorbed by private persons. Metcalf & Eddy v. Mitchell
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  35. taxation of income rends to raise (to some extent which economists are not able to measure, see Indian Motocycle Co. v. United
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  36. all those who deal with it were tax exempt was not thought to be an adequate basis for tax immunity in Metcalf & Eddy v. Mitchell
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  37. supra, in Group No. 1 Oil Corp. v. Bass
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  38. in Burnet v. Jergins
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  39. or in Helvering v. Mountain
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  40. it must clearly appear that the burden upon the state function is actual and substantial, not conjectural. Willcuts v. Bunn
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  41. insolvent corporation, where the state was reimbursed from the corporate assets, was subject to income tax. McLoughlin v. Commissioner
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  42. of the character ordinarily carried on by private citizens. The Revenue Act of 1917, considered in Metcalf & Eddy v. Mitchell
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  43. that neither the constitutional immunity nor the statutory exemption extended to independent contractors. In Brush v. Commissioner
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  44. ineffectual to exempt the salaries here involved. The reasoning upon which the decision in Indian Motocycle Co. v. United
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  45. state function differed from that of the present tax we do not now inquire. Compare Wheeler Lumber Bridge & Supply Co. v. United
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  46. States, 281 U. S. 572 . Page 304 U. S. 424 As was pointed out in Metcalf & Eddy v. Mitchell
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  47. government itself as to be considered beyond the reach of the federal taxing power. If the tax considered in Collector v. Day
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  48. Together with No. 780, Helvering, Commissioner of Internal Revenue v. Wilson
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  49. and No. 781, Same v. Mulcahy
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  50. to protect it from state taxation. Congress may curtail an immunity which might otherwise be implied. Van Allen v. Assessors
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