Eisner, Internal Revenue Collector v. MacOmber
Supreme Court of the United States
ERROR TO THE DISTRICT COURT OP THE UNITED STATES FOR .THE SOUTHERN DISTRICT OF NEW YORK. The case is stated in the opinion. The Act of 1916 taxes gains derived from capital invested in corporate stocks, that is, shares of corporate gains or profits. It does not tax dividends per se but merely uses them to indicate the form in which such gains shall be taxed and to mark the time when the tax shall be collected.
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ERROR TO THE DISTRICT COURT OP THE UNITED STATES FOR .THE SOUTHERN DISTRICT OF NEW YORK. The case is stated in the opinion. The Act of 1916 taxes gains derived from capital invested in corporate stocks, that is, shares of corporate gains or profits. It does not tax dividends per se but merely uses them to indicate the form in which such gains shall be taxed and to mark the time when the tax shall be collected. And, in the case of stock dividends, it uses the stock issued to measure the amount of the gains. The substance of the Act of 1916 is that no corporate earnings are taxed as distributed…
1Opinion of the CourtJustice Pitney
This case presents the question whether, by virtue of the Sixteenth Amendment, Congress has the power to tax, as income of the stockholder and without apportionment, a stock dividend made lawfully and in good faith against profits accumulated by the corporation since March 1, 1913.
It arises under the Revenue Act of September 8, 1916, c. 463, 39 Stat. 756, et seq., which, in our opinion (notwithstanding a contention of the Government that will be *200noticed), plainly evinces the purpose of Congress to tax stock dividends as income.1
The facts, in outline, are as follows:
On January 1, 1916, the…
2Cases cited12 opinions
- Brushaber v. Union Pacific RailroadSupreme Court of the United States · 1916
- Towne v. EisnerSupreme Court of the United States · 1918
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Pollock v. Farmers' Loan & Trust Co.Supreme Court of the United States · 1895
- Stratton's Independence, Ltd. v. HowbertSupreme Court of the United States · 1913
7 more not listed; retrieve them via the Exa API.
3Cited by604 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Robert D. Beard v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1986
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- Kellems v. BrownSupreme Court of Connecticut · 1972
- Paul F. Roemer, Jr. And Marcia E. Roemer v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
599 more not listed; retrieve them via the Exa API.