Serrallés Galiano v. Secretary of the Treasury

In order to carry out the government program announced by the administration which took over the destinies of the country immediately after the general elections of 1940, and in order to check the inflation which was being felt as a result of the outbreak of hostilities in Europe in 1939, the Legislative Assembly of Puerto Rico adopted a fiscal policy aimed at obtaining greater income for the public treasury. In the sphere of income tax, this policy was materialized through legislation increasing the rates, reducing the credits and the deductions allowed from the gross income, eliminating…