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Moments In Tax History | The Child Labor Tax Case | What’s A Tax? | TaxConnections Moments In Tax History | The Child Labor Tax Case | What’s A Tax?
Bailey v. Drexel Furniture Co., 259 U.S. 20 (1922) (a/k/a “Child Labor Tax Case”) Summary: In the Child Tax Labor Case, the U.S. Supreme Court ruled that a purported “tax” was really a “penalty” and therefore an unconstitutional exercise of Congress’s power to tax. While the breadth of the decision has been limited in light of subsequent Moments In Tax History | The Child Labor Tax Case | What’s A Tax?