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Helvering v. Davis --- Social Security is just a tax

Case Information
Helvering v. Davis

No. 910

SUPREME COURT OF THE UNITED STATES

301 U.S. 619

May 5, 1937

May 24, 1937

CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIRST CIRCUIT

Syllabus

1. The Court abstains from dismissing, sua sponte, as not properly within equity jurisdiction, a bill by a shareholder to restrain his corporation from making the tax payments and the deductions from wages required by Title VIII of the Social Security Act of August 14, 1935, the bill alleging that the exactions are void and that compliance will subject the corporation and its shareholders to irreparable damage. P. 639.

The corporation acquiesced. The Collector and Commissioner of Internal Revenue intervened in the court below, defended on the merits, brought the case to this Court by certiorari, and here expressly waived a defense under R.S. ' 3224 and any objection upon the ground of adequate legal remedy, and urged that the validity of the taxes be determined.

2. The scheme of "Federal Old-Age Benefits" set up by Title II of the Social Security Act does not contravene the limitations of the Tenth Amendment. P. 640.

3. Congress may spend money in aid of the "general welfare." P. 640.

4. In drawing the line between what is "general" welfare, and what is particular, the determination of Congress must be respected by the courts, unless it be plainly arbitrary. P. 640.

5. The concept of "general welfare" is not static, but adapts itself to the crises and necessities of the times. P. 641.

6. The problem of security for the aged, like the general problem of unemployment, is national, as well as local. Cf. Steward Machine Co. v. Davis, ante, p. 548. P. 644.

There is ground to believe that laws and resources of the separate States, unaided, cannot deal with this problem effectively. State governments are reluctant to place such heavy burdens upon their residents lest they incur economic disadvantages as compared with neighbors or competitors, and a system of old age pensions established in one State encourages immigration of needy persons from other States which have rejected such systems. P. 644. [p*620]

7. When money is spent to promote the general welfare, the concept of welfare or the opposite is shaped by Congress, not the States. P. 645.

8. Title II of the Social Security Act provides for "Federal Old-Age Benefits" for persons who have attained the age of 65. It creates an "Old-Age Reserve Account" in the Treasury and authorizes future appropriations to provide for the required old-age payments, but, in itself, neither appropriates money nor brings any money into the Treasury. Title VIII imposes an "excise" tax on employers, to be paid "with respect to having individuals in their employ," measured on the wages, and an "income tax on employees," measured on their wages, to be collected by their employers by deduction from wages. These taxes are not applicable to certain kinds of employment, including agricultural labor, domestic service, service for the national or state governments, and service performed by persons who have attained the age of 65 years.

continue:
http://www.law.cornell.edu/socsec/course/readings/301us619.htm



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Tax!

Tax! Not even. Not just.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

agreed.

not even. not just.

but it's definitely not a 401k either.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

Definitely!

401K lines someone else's pockets.

I do have a patent on trouser suspenders though. Don't recall making money at it; but, at least they held my trousers up.

I kid you not.

Mark Twain Takes Out a Patent -- Why He Did it.

Mark Twain was at the Patent Office yesterday for the purpose of taking out a patent. When we heard this information our first impression was that it was a huge joke on his part, and we asked, "What is it?"

There is no fun or fiction, however, about the thing. The genial humorist has actually hit on a new invention, and of course is anxious to make some money out of it and to be protected in his constitutional rights. His claim is briefly that he has invented a new pair of suspenders, of marvelous and hitherto undiscovered advantages, combining elegance, comfort and convenience.

http://www.twainquotes.com/interviews/InterviewSept1871.html

So, if I was to assemble enough coin to stay in my pockets, my suspenders hold hold onto my trousers.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Which makes sense when you think about it.

An "excise" tax, is a tax on certain kinds of activities, events, incidents, or occasions. It is also an indirect tax which can be avoided; "these taxes are not applicable to certain kinds of employment".

So if someone were self-employed with no employees, they would not be performing a taxable activity and therefore not subject to, nor liable for, a social security tax.

By law, if something is not included, it therefore must be excluded.

the excise is not the part

i have a problem with.
the 'income tax on the employee' part is where my panties start bunching.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

I'm tired and not thinking

clearly today. What does all this mean in layman terms?

"Necessity is the plea for every infringement of human freedom. It is argument of tyrants. It is the creed of slaves." William Pitt in the House of Commons November 18, 1783
"I know major allies who fund them" Gen. Dempsey referring to ISIS

the way i read it

it's just a tax.

8. Title II of the Social Security Act provides for "Federal Old-Age Benefits" for persons who have attained the age of 65. It creates an "Old-Age Reserve Account" in the Treasury and authorizes future appropriations to provide for the required old-age payments, but, in itself, neither appropriates money nor brings any money into the Treasury. Title VIII imposes an "excise" tax on employers, to be paid "with respect to having individuals in their employ," measured on the wages, and an "income tax on employees," measured on their wages, to be collected by their employers by deduction from wages.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

Tax! Not justice. Not just. Not fair. Not free.

Tax!

Done spent before it's paid.

President Reagan "Grace Commission" Flight of the Income Tax
Submitted by Mark Twain on Mon, 09/06/2010 - 01:08.
http://www.dailypaul.com/node/143510#comment-1530467

President Reagan asked innocently, "Where do all our income tax payments go?" He created the "Grace Commission" to find out.

Brief summary: Your Income Tax payments completely transfer from your pocket to someone else, without so much as a thank you.


"In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.

- 'Grace Commission' under President Ronald Reagan"

Been the case for a long, long time.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

I agree MT

The IRS is nothing more than a collection agency for the Federal Reserve. And, as with all criminal operations, they get their cut right off the top.

IRS, Corp - Subsidiary in Delaware... HQ in Puerto Rico.

Unconstitutional & Illegal in US. Headquarters in Puerto Rico.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul