This article needs additional citations for verification .(November 2013) |
Bailey v. Drexel Furniture Co. | |
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Argued March 7–8, 1922 Decided May 15, 1922 | |
Full case name | J. W. Bailey and J. W. Bailey, Collector of Internal Revenue for the District of North Carolina v. Drexel Furniture Company |
Citations | 259 U.S. 20 ( more ) 42 S. Ct. 449; 66 L. Ed. 817; 1922 U.S. LEXIS 2458; 3 A.F.T.R. (P-H) 3156; 1922-2 C.B. 337; 21 A.L.R. 1432; 1922 P.H. ¶ 17,023 |
Case history | |
Prior | Error to the District Court of the United States for the Western District of North Carolina |
Holding | |
Congress improperly penalized employers for using child labor. | |
Court membership | |
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Case opinions | |
Majority | Taft, joined by McKenna, Holmes, Day, Van Devanter, Pitney, McReynolds, Brandeis |
Dissent | Clarke |
Youth rights |
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Bailey v. Drexel Furniture Co., 259 U.S. 20 (1922), was a United States Supreme Court case in which the Court ruled the 1919 Child Labor Tax Law unconstitutional as an improper attempt by Congress to penalize employers using child labor. The Court indicated that the tax imposed by the statute was actually a penalty in disguise. [1]
The Court later abandoned the philosophy underlying the Bailey case. For example, see United States v. Kahriger , 345 U.S. 22 (1953), overruled on other grounds, Marchetti v. United States , 390 U.S. 39 (1968).
On February 24, 1919, Congress passed the Child Labor Tax Law which imposed an excise tax of 10 percent on the net profits of a company that employed children. The law defined child labor as “under the age of sixteen in any mine or quarry, and under the age of fourteen in any mill, cannery, workshop, factory, or manufacturing establishment.” The definition also included the use of children between the ages of fourteen and sixteen who worked more than eight hours a day or more than six days a week, or who worked between the hours of 7:00 p.m. and 6:00 a.m. Drexel was a furniture manufacturing company in North Carolina.
On September 21, 1921, a collector from the Bureau of Internal Revenue (now the Internal Revenue Service) assessed $6,312.79 in excise taxes for employing a child under fourteen during the 1919 tax year. Drexel paid the tax under protest and sued for a refund.
Drexel's main argument was that the tax was an unconstitutional attempt to regulate manufacturing. The United States argued that, the statute, as an indirect tax, did not need to meet a standard as long as it was geographically uniform. In addition, the government contended that the tax was merely an excise tax levied by Congress under its broad power of taxation under Article One of the Constitution. The lower court ruled in favor of the company.
Chief Justice Taft's Court declared the tax on child labor was unconstitutional because it was a disguised criminal penalty, not a tax, on employment of children. In addition, the Child Labor Tax Law is a regulation on businesses instead of a tax.
Taft argued the law describes a set course for businesses and when they deviate from that course, a payment is enacted. Taft said, “Scienters are associated with penalties, not with taxes.” “[A] court must be blind not to see that the so-called tax is imposed to stop the employment of children within the age limits prescribed.” Taft said that the court must commit itself to the highest law of the land and the duty of the court, even though it requires them to refuse legislation designed to promote the highest good. He went on to say that the good sought in unconstitutional legislation leads citizens and legislators down a dangerous path of breaching the constitution and recognized standards. In addition, Congress could take control of many areas of public interest, which the States have control over reserved by the Tenth Amendment, by enacting regulating subjects and enforcing them by a so-called “tax.” This would break down the constitutional limitations on Congress and eliminate the sovereignty of States. A tax is a source of revenue for the government, while a penalty is a regulation and punishment for a certain behavior.
One possible criticism is that the decision in Drexel was a reversal of the Supreme Court's position on excise taxes since the early 19th century and that this decision is out of line with Supreme Court rulings before and after. As a general rule, the court repeatedly favored the federal power to tax. In other cases, the court has upheld Congress's excise tax on narcotics, marijuana, and firearms. [2] Even with the firearms case, the Court admitted the law was unmistakably a legislative purpose to regulate rather than tax.
Despite this reversal of philosophy regarding Congress's ability to regulate through the tax code, the Court's definition of the Child Labor Tax as a penalty due to its characteristics featured prominently in the majority opinion in National Federation of Independent Business v. Sebelius , penned by Chief Justice John Roberts in 2012. The opinion holds that the individual mandate at the center of the Patient Protection and Affordable Care Act does not fulfill any of the characteristics (i.e., the heavy burden of tax for even slight infractions, the requirement of scienter in levying the tax, and the use of the Department of Labor to aid in enforcement) that allowed the Court to consider the Child Labor Tax as outside of Congress’ “Power To lay and collect Taxes, Duties, Imposts and Excises”, and therefore, the individual mandate may be considered within that power.
Previously, in Hammer v. Dagenhart , 247 U. S. 251, the Court ruled a law prohibiting the transportation in interstate commerce of goods manufactured with child labor was unconstitutional. After the court rejected both attempts by Congress to regulate child labor, Congress proposed a constitutional amendment which would give the national government the power to regulate and prohibit child labor, without a deadline for ratification by the states. The proposed amendment was never ratified, as it was made unnecessary by state child labor laws, and a later reversal of the Bailey decision after a suit against Section 212 of the Fair Labor Standards Act, which prohibited the transportation of goods in interstate commerce made from "oppressive child labor." [3]
Adair v. United States, 208 U.S. 161 (1908), was a US labor law case of the United States Supreme Court which declared that bans on "yellow-dog" contracts were unconstitutional. The decision reaffirmed the doctrine of freedom of contract which was first recognized by the Court in Allgeyer v. Louisiana (1897). For this reason, Adair is often seen as defining what has come to be known as the Lochner era, a period in American legal history in which the Supreme Court tended to invalidate legislation aimed at regulating business.
Lochner v. New York, 198 U.S. 45 (1905), was a landmark decision of the U.S. Supreme Court holding that a New York State statute that prescribed maximum working hours for bakers violated the bakers' right to freedom of contract under the Fourteenth Amendment to the U.S. Constitution. The decision has been effectively overturned.
Child labor laws in the United States address issues related to the employment and welfare of working children in the United States. The most sweeping federal law that restricts the employment and abuse of child workers is the Fair Labor Standards Act of 1938 (FLSA), which came into force during the Franklin D. Roosevelt administration. Child labor provisions under FLSA are designed to protect the educational opportunities of youth and prohibit their employment in jobs that are detrimental to their health and safety. FLSA restricts the hours that youth under 16 years of age can work and lists hazardous occupations too dangerous for young workers to perform.
Hammer v. Dagenhart, 247 U.S. 251 (1918), was a United States Supreme Court decision in which the Court struck down a federal law regulating child labor. The decision was overruled by United States v. Darby Lumber Co. (1941).
The Child Labor Amendment is a proposed and still-pending amendment to the United States Constitution that would specifically authorize Congress to regulate "labor of persons under eighteen years of age". The amendment was proposed on June 2, 1924, following Supreme Court rulings in 1918 and 1922 that federal laws regulating and taxing goods produced by employees under the ages of 14 and 16 were unconstitutional.
David Josiah Brewer was an American jurist who served as an associate justice of the Supreme Court of the United States from 1890 to 1910. An appointee of President Benjamin Harrison, he supported states' rights, opposed broad interpretations of Congress's power to regulate interstate commerce, and voted to strike down economic regulations that he felt infringed on the freedom of contract. He and Justice Rufus W. Peckham were the "intellectual leaders" of the Fuller Court, according to the legal academic Owen M. Fiss. Brewer has been viewed negatively by most scholars, though a few have argued that his reputation as a staunch conservative deserves to be reconsidered.
The Lochner era is a period in American legal history from 1897 to 1937 in which the Supreme Court of the United States is said to have made it a common practice "to strike down economic regulations adopted by a State based on the Court's own notions of the most appropriate means for the State to implement its considered policies". The court did this by using its interpretation of substantive due process to strike down laws held to be infringing on economic liberty or private contract rights. The era takes its name from a 1905 case, Lochner v. New York. The beginning of the era is usually marked earlier, with the Court's decision in Allgeyer v. Louisiana (1897), and its end marked forty years later in the case of West Coast Hotel Co. v. Parrish (1937), which overturned an earlier Lochner-era decision.
The Taxing and Spending Clause, Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States its power of taxation. While authorizing Congress to levy taxes, this clause permits the levying of taxes for two purposes only: to pay the debts of the United States, and to provide for the common defense and general welfare of the United States. Taken together, these purposes have traditionally been held to imply and to constitute the federal government's taxing and spending power.
Flint v. Stone Tracy Co., 220 U.S. 107 (1911), was a United States Supreme Court case in which a taxpayer challenged the validity of a federal income tax on corporations. The privilege of incorporation is a state function, and the challengers argued that only the states should tax corporations. The Court ruled that the privilege of operating in corporate form is valuable and justifies imposition of a federal income tax:
Carter v. Carter Coal Company, 298 U.S. 238 (1936), is a United States Supreme Court decision interpreting the Commerce Clause of the United States Constitution, which permits the United States Congress to "regulate Commerce... among the several States." Specifically, it analyzes the extent of Congress' power, according to the Commerce Clause, looking at whether or not they have the right to regulate manufacturing.
Smith v. Turner; Norris v. Boston, 48 U.S. 283 (1849), were two similar cases, argued together before the United States Supreme Court, which decided 5–4 that states do not have the right to impose a tax that is determined by the number of passengers of a designated category on board a ship and/or disembarking into the State. The cases are sometimes called the Passenger Case or Passenger Cases.
Tax protesters in the United States advance a number of constitutional arguments asserting that the imposition, assessment and collection of the federal income tax violates the United States Constitution. These kinds of arguments, though related to, are distinguished from statutory and administrative arguments, which presuppose the constitutionality of the income tax, as well as from general conspiracy arguments, which are based upon the proposition that the three branches of the federal government are involved together in a deliberate, on-going campaign of deception for the purpose of defrauding individuals or entities of their wealth or profits. Although constitutional challenges to U.S. tax laws are frequently directed towards the validity and effect of the Sixteenth Amendment, assertions that the income tax violates various other provisions of the Constitution have been made as well.
A general welfare clause is a section that appears in many constitutions and in some charters and statutes that allows that the governing body empowered by the document to enact laws to promote the general welfare of the people, which is sometimes worded as the public welfare. In some countries, it has been used as a basis for legislation promoting the health, safety, morals, and well-being of the people governed by it.
National Federation of Independent Business v. Sebelius, 567 U.S. 519 (2012), is a landmark United States Supreme Court decision in which the Court upheld Congress's power to enact most provisions of the Patient Protection and Affordable Care Act (ACA), commonly called Obamacare, and the Health Care and Education Reconciliation Act (HCERA), including a requirement for most Americans to pay a penalty for forgoing health insurance by 2014. The Acts represented a major set of changes to the American health care system that had been the subject of highly contentious debate, largely divided on political party lines.
The Hughes Court refers to the Supreme Court of the United States from 1930 to 1941, when Charles Evans Hughes served as Chief Justice of the United States. Hughes succeeded William Howard Taft as Chief Justice after the latter's retirement, and Hughes served as Chief Justice until his retirement, at which point Harlan Stone was nominated and confirmed as Hughes's replacement. The Supreme Court moved from its former quarters at the United States Capitol to the newly constructed Supreme Court Building during Hughes's chief-justiceship.
The Taft Court refers to the Supreme Court of the United States from 1921 to 1930, when William Howard Taft served as Chief Justice of the United States. Taft succeeded Edward Douglass White as Chief Justice after the latter's death, and Taft served as Chief Justice until his resignation, at which point Charles Evans Hughes was nominated and confirmed as Taft's replacement. Taft was also the nation's 27th president (1909–13); he is the only person to serve as both President of the United States and Chief Justice.
The White Court refers to the Supreme Court of the United States from 1910 to 1921, when Edward Douglass White served as Chief Justice of the United States. White, an associate justice since 1894, succeeded Melville Fuller as Chief Justice after the latter's death, and White served as Chief Justice until his death a decade later. He was the first sitting associate justice to be elevated to chief justice in the Court's history. He was succeeded by former president William Howard Taft.
The Fuller Court refers to the Supreme Court of the United States from 1888 to 1910, when Melville Fuller served as the eighth Chief Justice of the United States. Fuller succeeded Morrison R. Waite as Chief Justice after the latter's death, and Fuller served as Chief Justice until his death, at which point Associate Justice Edward Douglass White was nominated and confirmed as Fuller's replacement.