Merrill v. United States

JONES, Chief Judge.

Plaintiff taxpayer is suing for a refund of taxes for the calendar years 1944 and 1945, in which he had a net income (including net capital gains) of $1,246,597.23, and $1,975,818.74, respectively. Section 12(g) of the Internal Revenue Code, 26 U.S.C.A. § 12(g), as constituted for the years in question, contained an effective tax rate limitation of 90 percent of the net income of the taxpayer, applicable to taxes imposed by sections 11 and 12. Recovery in this suit is dependent upon the application of section 12(g) to the alternative capital gains tax imposed by section…