The Corporation Tax, as imposed by Congress in the Tariff Act of 1909, is not a direct tax, but an excise; it does not fall within the apportionment clause of the Constitution, but is within, and complies with, the provision for uniformity throughout the United States; it is an excise on the privilege of doing business in a corporate capacity, and, as such, is within the power of Congress to impose; franchises of corporations are not governmental agencies of the state, and the tax is not invalid as an attempt to tax state governmental instrumentalities; not being direct taxation, but an excise, the tax is properly measured by the entire income of the parties subject to it notwithstanding a part of such income may be derived from nontaxable property; the tax does not take property without due process of law, nor is it arbitrarily unequal in its operation, either by differences in corporations or by reason of the classes exempted; the method of its enforcement is within the power of Congress, and all corporations, not specially exempted by the act itself, carrying on any business, are subject to the provisions of the law.…
Case Law Document:
