Penn Mut. Indem. Co. v. Commissioner
United States Tax Court
Held, the tax imposed upon mutual insurance companies (other than life or marine), computed under section 207(a)(2), I.R.C. 1939, as amended, is constitutional. The only possible objection to its validity is that it is a "direct" tax which must be apportioned according to population. The tax is not a "direct" tax within the meaning of the Constitution, and the fact that underwriting losses are not deductible is constitutionally irrelevant.
1DissentPierce, J.
Because of the importance of this case, in its bearing upon the statutory prerequisites to this Court’s obtaining jurisdiction of income tax controversies, and also in its bearing upon the powers and duties of the Court in dealing with the issues presented in cases properly before it, I believe it appropriate to set forth the reasons for my dissent from the majority opinion. Such dissent is based on three principal grounds:
I
This Court does not, in my opinion, have jurisdiction to decide the present case, on its merits. And I believe that the motion filed by respondent, to dismiss the case for…
2Cases cited24 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Flora v. United StatesSupreme Court of the United States · 1958
- Helvering v. GriffithsSupreme Court of the United States · 1943
- Kansas City, Memphis & Birmingham Railroad v. StilesSupreme Court of the United States · 1916
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