Document: 363 U.S. 299 80 S.Ct. 1204 4 L.Ed.2d 1233 UNITED STATES, Petitioner,v.Allen KAISER. No. 55. Argued March 23, 1960. Decided June 13, Mr. Wayne G. Barnett, Washington, D.C., for petitioner. Joseph L. Rauh, Jr., respondent. Justice BRENNAN announced the judgment of Court, and delivered an opinion in which THE CHIEF JUSTICE, BLACK, DOUGLAS join. 1 This case presents questions whether a labor union's strike assistance, by way room rent food vouchers, furnished to worker participating constitutes income him under § 61(a) Internal Revenue Code 1954, 26 U.S.C.A. 61(a);1 assistance this particular worker, who was need, constituted 'gift' him, hence excluded from 102(a) Code, 102(a).2 2 The respondent employed Kohler Company Wisconsin. bargaining representative at plant Local 833 United Automobile, Aircraft, Agricultural Implement Workers America, CIO (UAW). In April Local, with approval International Union UAW, called against support various demands connection proposed renewal their recently expired collective contract. not member Union, but he went out on strike. He had been earning $2.16 hour his job. sole source income, when struck soon found himself financial need. headquarters requested assistance. It policy grant many strikers simply need basis. made no difference striker union member. representatives questioned as resources, dependents. other job needed respect essentials life. single during period question, provided voucher $6 week, redeemable kind local store; later increased $7.50 week. also paid rent, amounted $9 If married children received respectively larger vouchers.3 over-all render where could obtain state unemployment compensation or public benefits. But former condition does prevail Wisconsin,4 available only showing destitution evidently deemed extreme Union. 3 thought that ought perform picketing duty, did require, advise encourage were receiving picket any activity furtherance strike; ceased obtained work. Respondent performed some picketing, though apparently considerable amount. After several months, joined required suggested continued receipt program primarily financed through fund raised crediting it 25 cents $1.25 per capita monthly assessment unions. small built up credits 5 members' dues contributions degree, contended be substantial, unions outsiders. constitution authorizing agency strikes, imposed general duty members strike.5 During value $565.54. computing federal tax year, include gross amount District Director informed $565.54 should have added due $108 accordingly. amount, after administrative rejection refund claim, sued Court Eastern A jury trial had, court submitted interrogatory rendered gift. answered affirmative; entered Government, n.o.v., basis matter law respondent, fall within statutory exclusion gifts. 158 F.Supp. 865. 6 By divided vote, Appeals Seventh Circuit reversed. 262 F.2d 367. held alternatively concept event jury's determination gift, 102(a), rational evidence accordingly its province trier facts. We granted Government's petition certiorari, because importance issues presented. 359 1010, 79 1150, 1035. Later, Government petitioned certiorari 376, Commissioner v. Duberstein, acquiesced taxpayer's 546, Stanton States, 278, 1190, those cases set down argument bar, they illustrated more context presented case. agreed, argued together. conclude, our Duberstein case, 362 page 1196, finder facts, acted competence concluding here gift 102(a). Accordingly, we affirm Appeals. Therefore, think unnecessary consider express fact meaning 61(a). 7 At trial, counsel make objection part Court's charge exclusion. is belatedly challenged, position there formulated new 'test' application area.6 rejected contention Duberstein. absence specific demonstration compelling reason dispensing such objection, do notice defect charge, light controlling legal principles reviewed them 8 think, also, proofs adequate conclusion jury. Our stresses basically factual nature inquiry issue. inferences drawn basic facts They power record, taking into account factors form conditions personal lack sources compensation, dependency status, surrounded rendered, while strikers, recompense striking. concluded very language Union's constitution, considered entity just referred, indicate proceeded constraint moral obligation, would preclude being And all these circumstances, class persons community economic generosity charity, rather than incentive anticipated benefit. can hardly say that, law, transfers one having sympathetic interest giver prevents present most unquestionable charity. 9 stop speculate what sat box did. question allocation decide question; once conclusions reached evidence, instructions are overthrown, reviewing authority exhausted, must recognize empowered verdict 10 Affirmed. 11 FRANKFURTER, whom CLARK joins, concurring result. 12 1957 ruled benefits without regard membership, regarded recipient's purposes. Rev.Rul. 57 1, 1957—1 Cum.Bull. 15. ruling, if valid, governs taxpayer assails ruling three grounds. First, urged series rulings since 1920 has treated both private 'subsistence relief' payments constituting income; relevantly different relief'; fair administration constrained so treat order accord 'equal treatment.' Second, Commissioner's decisions evolved category 'gross income,' explicitly stated statute, 'alleviative' receipts result 'enrichment,' i.e., 'reparation' loss injury suffered recipient, Third, general, least particular, 'gifts' 'gifts.' first ground, denial consistent treatment accorded payments, depends wholly upon past Commissioner. chronological order, substance relevant ground Appendix, 317, 1214, opinion. Set well pertinent parties theory 'alleviate' 'reparations' receipts. two theories overlap much material same. For each included conclusion, reasons supporting given. 13 What reveal largely viewpoint read. Only Numbers 21, dealt expressly benefits, Number 21 challenged. Putting aside, may taxed services direct consideration given, arise employment relation, relatively designed enable recipient provide needs said sense 'subsistence' payments. None holding taxable squarely contradicts conclusion. 14 2, taxing members, supposed lent ways, thus 15 5, 15, 19, 24 25, taxable, contradict it. either funds partly sustained employer (Numbers 19), become eligible paying 24, 25). Thus, is, example, insurance. clear varied contribution fund, other. 16 strike-benefit regarding consideration, concerned members. 17 20 casts doubt enough seriously disturb concerning German mistreated Nazis, left open greater property confiscated might depending circumstances. reasoned windfalls, related 'subsistence,' clearly decided income. 18 So, starts feeling assumption relief,' voluntary giving Commissioner, adduced justify one's starting point. 19 There why reasoning conclude my view. far situation before us falls hypothetical category. Although picket, year union. regularly contributed, contributed. See 25. possible distinguish minimal non-members alike, furnish solid claim uniform non-taxability like My second basic. evaluation materials Appendix lead uniformly so-called subject tax. bound follow considers inapplicable overriding principle 'equal' treatment. cannot another difference. so, assuming correctness 'equality,' independent decision inconsistent, concern hold original now seeks sustain wrong. I am right about justification asking bind rulings, indifference matter, appropriate not, 'Can rulings?' 'Is prior apply case?' denying analyzed ascertain explain reasonably explained, individually severally, govern explained leaves free assert are, unless 'gifts,' 22 sixteen forth imposed: 3, 4, 6, 7, 8, 9, 10, 11, 12, 14, 16, 17, 18, 22. Of these, given several, others spelled out. payment score. mentioned once, used characterization, reason, accepted suggest grounds 23 'are gratuitous spontaneous.' circumstances involving disaster relief, natural suppose reflects explaining 13. 20, involved thing lost damaged ascertainable market net profit effectual exchange received. articulated there, applied whose 'gift.' companion even principal (see 20) reduce deduction permitted casualty emphasizes explicit return suffered. Even injured purposes gain loss, reparation used. Thus damages alienation affections defamation 'in compromise' 'for invasion of' 'personal right.' McDonald B.T.A. 1340, referred 7. breach promise marry '(a) susceptible appraisal relation values.' death 'compensation (the) (of life).' prisoner war 'reimbursement.' work compensates something itself item payment. clearest ordinarily capital asset, e.g., insurance house destroyed. 12. asset sold gain. result, then, same destroyed sure, difficulties, ordinary assets involved, applying health life affection reputation. With difficulties concern. has, have, deal cases, show has. 27 important note Glenshaw Glass Co., 348 426, 432, 75 473, 477, 99 L.Ed. 483, recognized '(t)he long history departmental recoveries non-taxable roughly correspond capital,' distinguished punitive damages, compensatory therefore taxable. States Supplee-Biddle Hardware 265 189, 195, 44 548, 68 970. 28 rationale applicable compensate wages, compensated for, received, Safety Car Heating & Lighting 297 88, 56 353, 500. That out, aspect analogous capital, obviously retained. 29 Taking stock, ten explainable according legitimate loss' taxed. remaining portion concerns Red Cross relief clothing. inclusion asked use assets. asserted, explication, clothing, 'nor represent income.' unreasonable attribute 'gift,' charitable organization. 30 imposing remain unexplained dealing 31 'Numbers old age Social Security Act. 32 Act, 42 301 et seq. Federal Unemployment Trust Fund plan cover employees. 33 Panama Act 'basically similar' 34 blind, statute disbursement money purpose. 35 Except 22, came funds, Panamanian analogue. relies 11. These rely others, them. On hand, non-governmental employers, unions, 'private' groups similar character except nature. instances us, never non-taxable. Having pension, age, source, arose arrangement other, disentitled past. Surely differentiating, purposes, comprehensive scheme welfare legislation although ultimate social similar. To control schemes entitled find legislation, statutes, excluding taxation, 36 deals blind. Aside differences unreasonably blind common object alone create practice binding 37 summary, taxpayer. aside Therefore seeking denied 38 No argues cases. urge, however, 'alleviative,' derived. already discussed view formulate covering formulating principle. Such best Treasury initiative congressional adoption. Moreover, reflected $600 exemption graduated rates. 39 Finding otherwise outside decisive factor me As reading benefit fit notion surely strong self-interest strikers. implications arising relationship between calls special unrealistic qualify, based derive solely promptings benevolence. 40 41 term denotes advantage gratuitously, obligation payment, moral, remuneration wished done omitted plaintiff. intent nothing repay plaintiff's bestowed pity motives philanthropy plaintiff family actual obligations, above to, expectation anything return, then gifts,' certainly unfavorable Government. 43 me, record finding, instructions, was, unlike benefit, benefaction uninfluenced promoting success judge precluded verdict; reinstated verdict. stand? justifying existing Sheboygan time paid, assumed functions normally exercised organizations governmental programs, excessive difficulty getting them, dispensed pursuant what, strike, distressed area. mere men When negating business enough, employees see 59—58, 1959—1 turkeys, hams, etc., Christmas holiday reported close sufficient making exercising function. view, restricted below. 45 aware disposition juries reaching Some individualization inevitable courts determine diversities scope fact-finders—whether jury—by today 1190. 46 Appendix. 47 citations 'O.D.' refers Office Decision, 'I.T.' Income Tax Ruling, 'Sol.Op.' Solicitor's Opinion, 'S.' Memorandum, 'G.C.M.' General Counsel's 'Rev.Rul.' 'T.D.' Decision. 48 O.D. 552, 73 (1920). 49 'Benefits individual provision exempting taxation.' 50 2. I.T. 1293, I—1 63 (1922). 51 'Amounts organized unemployed recipients.' 52 3. Sol.Op. 132, 92 53 Damages 'In Supreme (Stratton's Independence Howbert, 231 399, 136, 58 285 Eisner Macomber, 252 64 521) gain, derived character. invaded transferable. While endeavors compute damage inflicted, things correct estimate rights. rights hand incomparable placed opposite sides equation. possessed assignable values, thereafter receives compromise right, thereby derives profit.' Revoking S. 1384, 71, 72 (1920), relying T.D. 2747 (unpublished) 'it injuries accident constitute 54 4. 1804, II—2 61 (1923). 55 '(A) values * *.' Relying supra, 521. 5. 1918, III—1 121 (1924). Payments 'involuntarily thrown certain industry.' established purpose agreement 'an association manufacturers' 'employees' association' maintained deductions wages ratify equivalent employers. Held, 'Any employee excess amounts contributed will him.' Also deduct fund. 6. 2420, VII—2 123 (1928). 59 Payment her husband Lusitania. Germany Mixed Claims Commission Germany. 'An award embraced 'income.' instant restore (the recipient) substantially status she husband.' 60 G.C.M 4363, 185 (1928); 2422, 186 contract acquiesces 1340 holds. 501, 70 2170, IV—1 (1925), otherwise, revoked. 62 8. 3194, 1938—1 114. Lump sum 204(a) Stat. 620, 404(a), 'aged individuals qualified (under 202 Act)' 65. maount 1/2% total Dec. 31, 1936, 9. 3229, 1938—2 136. 65 'Federal old-age benefits' provisions §§ 203 204(b) 403, 404(b) estates deceased. Amount equals earned occurs 65; deceased life, whichever higher. citing 'likewise' 66 10. 3230, 136—137. 67 Benefit 'under State compensation' periods. Fund. Money deposited 3447, 1941—1 191. 69 Monthly Old Age Survivors Insurance amended, 1360, 402. Special Ruling. May 1952, 1952—5 CCH Fed.Tax.Rep. 6196. 71 Ruling (1) 'will affect deductibility losses casualty,' (2) food, medical supplies, 'the (for Code).' 'from American victim cash restoring rehabilitating deductible taxpayer,' '(f)ood, forms subsistence replacements nor 131, 1953—2 112. rehabilitation actually sources' corporation families tornado. size depend length service employment, states 'not rendered.' 'Such contributions, measured spontaneous. objective try place position, near possible, casualty.' 74 14. 54—19, 1954—1 179. Monetary recovery decedent's estate Wrongful Death statute. eventually receive proceeds. 'Proceeds nature, 'income," supra. 76 54—190, 46. 77 Pension administered compulsory earnings. how varied. Benefits payable unable keep jobs get regular disability. suspended employee's reach level. Since 'directly attributable' gifts, '(a)ccordingly' 78 16. 55—132, 1955—1 213. War 1948, 1240, 2001 seq., enemy government's violation humane prisoner. reimbursement rights.' 17. 55—652, 1955—2 21. 81 1130. equal covered laws be. State, acting agent Secretary Labor. tax, supra (relating federally Act). equally here. 82 18. 56—135, 1956—1 56. 83 'Social security Republic citizens living working Panama. sundry system described nontaxable recipients 3447 (Number supra).' 84 19. 56—249, 488. 85 workers M. Co. contributes. supplement combination give percentage salary laid off, marital number dependents wage rate off. Length 86 20. 56—518, 1956—2 87 persecuted Nazi 'life, body, health, liberty, ownership, professional advancement.' deprivation civil rights,' taken away less property. Where away. 88 57—1, 89 Strike membership. conflict 3230 relating Fund), payments), believed Congress intended tax,' seen 131 supra), corporation's rehabilitate tornado, donative. 54—190 pension relied upon. 90 57—102, 26. 91 person Public Assistance Law Pennsylvania, P.S. 2501 'providing regulating classes requiring relief.' authorizes 'to cooperate with, accept disburse from, persons.' 'a public.' 23. 6272, 1.61—11(b), 1957—2 30. 93 'Pensions retirement allowance law. *' Amounts pensions annuities Railroad Retirement 94 24. 57—383, 44. 95 dues. Plan insurance, choosing beforehand desired, 96 59—5, 97 Dues vary desired. extent exceed recipient. excludes above-cited (Commissioner 483) (Rev.Rul. dues) applicable.' '(E)ach contribute desires ultimately receive. gratuitously gifts.' Citing dues). 98 DOUGLAS, concurring. join Brother BRENNAN, merits divergent rest word explanation needed. Bogardus 302 34, 41, 61, 65, 32, stockholders were, present, said: 100 'There entirely lacking constraining force beyond satisfaction flows performance generous act.' 101 Had motion directed deference granted, idea broader Brethren. points (who became solicitation months began benefits) act line. serve cause Yet whole setting indicates welfare, plain simple. Unions, impulses incentives. Here needy got relief.* (so shows) submission jury, favored right. 102 WHITTAKER, HARLAN STEWART join, dissenting. 103 whether, rule adopted reasonable 1954 Code.1 104 deference, convinced contrary, compels construed case.2 105 organization serving certified numerous units One call, approve call strikes better hours employees, and, course, win strikes. end, provides creation Fund, assisting waging winning created maintains fund.3 Article further that: 106 'If approved Executive Board, shall Board resources responsibilities Union.' 107 undertaking striking when, here, 108 International's relate stipulated 109 'The grants participate purchase meet emergency situation. treats (Emphasis added.) early 'received Union' totaling 1954.4 110 intention transferor determines 32; attempting shed additional determinative requisite donative impelled transfer, 111 'This indicated voluntarily executed transfer another, therefor, common-law necessarily And, importantly, proceeds duty,' benefit' sense, 'detached disinterested generosity,' *; 'out affection, respect, admiration, charity impulses.' 285, 1196. 112 workers, seems continue union, motivated Those objectives—the strike—and "the nature' force' assist Because advantages manifest financially sustaining carried shows, Wholly apart immediate sought achieve qualify recognizes, made, "detached generosity," shows principally detached generosity, prompted question. 113 Secretary-Treasurer expressed course 'same function' furnishing persons. motivate whereas, assists humanitarian impulses, itself, not. response relieve hardships control; shown designed, least, victorious end. motivation supplying purely successful impulse.5 114 fortified long-standing Department. twice 115 again 1957, ruled: 116 'Strike broad definition exclusions including gifts section 102. means securing 117 'Accordingly, includible distributed regardless nonmembers union.' 16—17. 118 Nor 'special circumstances' require avail themselves offered agencies However, waive requirement Secretary-Treasurer: 119 County small, red tape obtaining it, seek agencies.' 120 but, testified previously, waived because, checking Welfare Agency, expected license plates automobiles, restrictions great didn't impose workers.' one, proceeding generosity" "out impulses," 1197, proceeding, rather, obviate oppression effectively preserve corroborates, unmistakably, genuine involved. 122 reverse 'income' 'Except subtitle, whatever derived, (but limited to) following items: '(1) Compensation services, fees, commissions, items; '(2) Gross business; '(3) Gains dealings property; '(4) Interest; '(5) Rents; '(6) Royalties; '(7) Dividends; '(8) Alimony separate maintenance payments; '(9) Annuities; '(10) endowment contracts; '(11) Pensions; '(12) discharge indebtedness; '(13) Distributive share partnership '(14) decedent; '(15) trust.' 'Gross acquired increase $15 weekly voucher; child, $18 voucher. Compare N.Y. Labor Law, McKinney's Consol.Laws, c. 592 (compensation seven weeks striking). authorize strikes.' Section article authorization, Art. constitution. Specific challenge until reply brief noted. An letter national dated part: handling problems tasks facing everything minimize hardship periods using UAW—CIO, Community Services Program full services. medical, hospital nursing care, aid, (in New York State), child care lay-off pay taxes Federal, agencies. '* Emergency minimum own Unions Regional Director.' following: non- applicant appear Counsellor asks contained printed Counselling form. makes distinction applicants granting aid began, $6.00 week; couple $10.00 children, $13.85 28, people strike: $15.00 $18.00 week.' provides: bequest, devise, inheritance.' U.S.C. plurality 'income,' excludable realized gains recipients, partial substitute materially categories fiat. (See Rulings detailed FRANKFURTER'S opinion.) therefore, income' Code. 429—430, 475—476, 483. written locals describing follows: current build protect future large periods.' emphasized respondent's nonmember parties' stipulation nullifies distinguishing deciding indeed, purport distinction. often doubted. testimony officials expenditures emergencies caused tornado Flint, Michigan, flood Connecticut. regional officer purchased furniture home furnishings burned, viewing action, somewhat differently 'outright donation' plainly waged

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