Merion Cricket Club v. United States

CLARK, Circuit Judge.

Some, at least, of the “leisure activities” said to be characteristic of a club1 seem to have been devoted to tax litigation. So wel find the member-taxpayers taking a broad view of the scope of “pleasure, recreation, etc.'” 2 and a narrow view of the meaning of “initiation fees” and “membership dues and fees”. They first whittled at initiation fees.3 Next, they succeeded in exempting assessments.4 Clubs responded to this by lowering dues and increasing assessments. So the device did not affect their economy, but did effect a tax saving. Congress naturally plugged both…