Document: 345 U.S. 22 73 S.Ct. 510 97 L.Ed. 754 UNITED STATEv.KAHRIGER. No. 167. Argued Dec. 16, 17, 1952. Decided March 9, 1953. Rehearing Denied April 6, See 931, 778. Mr. Robert L. Stern, Washington, D.C., for appellant. Jacob Kossman, Philadelphia, Pa., appellee. Justice REED delivered the opinion of Court. 1 The issue raised by this appeal is constitutionality occupational tax provisions Revenue Act 1951,1 which levy a on persons engaged in business accepting wagers, and require such to register with Collector Internal Revenue. unconstitutionality asserted two grounds. First, it said that Congress, under pretense exercising its power has attempted penalize illegal intrastate gambling through regulatory features Act, 26 U.S.C. (Supp. V) § 3291, U.S.C.A. thus infringed police reserved states. Secondly, urged registration violate privilege against self-incrimination are arbitrary vague, contrary guarantees Fifth Amendment. 2 case comes here appeal, accordance 18 3731, from United States District Court Eastern Pennsylvania, where an information was field appellee alleging he wagers willfully failed pay question. Appellee moved dismiss ground sections upon based were unconstitutional. sustained motion authority our v. Constantine, 296 287, 56 223, 80 233. court reasoned while 'the subject matter legislation so far as revenue purposes concerned within scope Federal authorities', unconstitutional called 'peculiarly applicable applicant standpoint law enforcement vice control', therefore whole infringement Government states Tenth Kahriger, 105 F.Supp. 322, 323. 3 result below at odds position seven other district courts have considered matter,2 and, opinion, erroneous. 4 In term following Constantine pointed out Sonzinsky States, 300 506, page 513, 57 554, 555, 81 772 (a involving 'limited class' objectionable firearms alleged be prohibitory effect 'to disclose unmistakably legislative purpose regulate rather than tax'), 'described or treated criminal taxing statute.' special additional excise $1,000, placed only who carried liquor violation state law. wagering we applies all receiving regardless whether activity violates 5 substance respondent's respect Amendment Congress chosen specified not regulate. precedents many upholding taxes similar proper exercise federal power. License Tax Cases, Wall. 462, 497, controversy arose indictments selling lottery tickets retailing various without having first obtained paid license Congress. objecting taxpayers could constitutionally activities state. 470. had 'no regulation nor any direct control' Wall., pages 471, 472, over there involved. if licenses regarded themselves giving carry licensed might impossible reconcile granting them Constitution. Wall 471. 6 'But necessary regard these laws authority. So they relate trade State limits, give none, can none. They simply express government interfere penal proceedings nominally licensed, required paid. questioned, impose penalties non-payment taxes. license, therefore, must nothing more mere form imposing tax, implying except licensee shall no national law, pays it.' 7 would us say because history3 indicating congressional motive suppress wagering, supra, admitted 'discouraged' activities. intent curtail hinder, well also manifest cases, each upheld: Veazie Bank Fenno, 8 533, 19 482 (tax paper money issued banks); McCray 195 27, 59, 24 769, 777, 49 78 colored oleomargarine; Doremus, 249 86, 39 214, 63 493 Nigro 276 332, 48 388, 72 600 narcotics); firearms); Sanchez, 340 42, 71 108, 95 47 marihuana). It conceded does cease valid merely discourages deters taxed. Nor invalid negligible. Appellee, however, argues sole statute guise measure. As above held valid, instant effect. But effect, produces revenue. surpasses both narcotics found valid.4 9 axiomatic extensive sometimes falls crushing businesses deemed unessential inimical public welfare, where, dealings narcotics, collection difficult. known, constitutional restraints few. 'Congress cannot exports, rule apportionment indirect uniformity.' 471.5 remedy excessive taxation hands courts. 548, 482. Speaking creation instrument carrying fiscal policies, McCulloch Maryland, Wheat, 316, 423, 579. 10 'Should execution powers, adopt measures prohibited constitution; should pretext executing pass accomplishment objects entrusted government; become painful duty tribunal, requiring decision come before it, act land. prohibited, really calculated government, undertake inquire into degree necessity, line circumscribes judicial department, tread ground. This disclaims pretensions power.' 11 difficulty saying when lay uniform curtailed, use brings beyond given rise diverse decisions. area abstract ideas, final definition between baffled judges legislators. 12 While never questioned above-quoted statement Chief Marshall case, application brought varying holdings constitutionality. Where rested Necessary Proper Clause Commerce Clause, generally statutes, despite their matters ordinarily concern. When found, Congress.6 employed clause greater variation decisions resulted. division been acute. Without specific differentiation results doubts. strikingly illustrated shifting course adjudication handling narcotics.7 recognized strictly governmental right power.8 That allowed obliterated circulation bank notes. A reason prescribe departments limitations acknowledged powers.' 548. cases cited third preceding paragraph followed theory. hard understand why raise doubts effects powers.9 13 Penalty statutes added breach concerning caused declare enactments invalid.10 Unless provisions, extraneous need, limit power.11 All adapted tax. 14 do find requirements offensive. filing names, addresses, places business. quite general returns.12 Such data directly intimately related 'obviously supportable aid purpose.' 555. make simpler collect. 15 Appellee's second assertion denial guaranteed 16 Since difficult see how now claim even assuming disclosure violations for. Sullivan, 274 259, 607, 1037, defendant convicted refusing file income return. assumed his 'was derived National Prohibition Act'. 263, 607. 'As defendant's taxed, Sischo, 262 165, 43 511, 67 925. Constitution protection pressed too far. If return provided answers privileged making objection return, but account refuse all.' 17 Assuming respondent issue, relation past acts, future acts may committed. Wigmore (od ed., 1940) 2259(c). wishes take 3285, register. Under compelled confess already committed, formed order engage fulfill certain conditions.13 Finally, consider contention dismissal correct conviction question Due Process classification statutory definitions vague.14 3285(b), (d) (e), 3285(b, d, e).15 arbitrariness arise discrimination some excluded. cover phases taxed business.16 Respondent predicates vagueness use, defining description 'engaged business' 'usually' 3285(b) (2). We doubt clear covered Reversed. 20 JACKSON, concurring. 21 I concur judgment Court, minority agreed did impair legitimate probably join it. deal important contrasting values scheme neither destroy other. On one hand, provides person 'shall witness himself'. broadly construed confer immunity 'in case' inquiry useful later convict crime. Extension doctrines create large number immunities reporting vary Moreover, claimed being established, otherwise prove guilt avoid admitting Sweeping undiscriminating almost taxpayer option report, gives witnesses virtual testify. conferred original Constitution, especially Sixteenth Amendment, further absolutely required. 23 Of course, tendency proportioned burdensomeness discourage One formulate revenue-raising plan economic social consequences. place burden will least handicap desirable bear most heavily useless harmful ones. citizen point discouragement honest living, same another just makes sinister living. law-abiding tell collector, excuse law-breaking. Strangely enough, refused inquisition power, Shapiro 335 1, 68 1375, 92 1787, what seemed me flagrant dissenting 70, 1410. purported requires reports lays gamblers whose calling illegal. group step forward identify themselves, like others income, source. rational good-faith measure, deference due contrary, seems existence professional gambler whom prosecute existence. Few pursuits entitled less consideration gambling, plain unwelcome fact continues survive influential part population patronizes protects 25 system confession. people numerous, scattered individualistic annually assesses itself liability, often highly burdensome amounts, reassuring sign stability vitality self-government. What surprised once trying help administer discover examples recalcitrance, fraud self-serving mistakes reporting, derelictions sad day revenues good toward frittered away efforts accomplish moral reforms accomplished legislation. evil soon impairing extreme interpretations transient. Even though approaches fair limits constitutionality, FRANKFURTER, dissenting. 27 Court's manifests natural reaching conclusion. Constitutional issues likely whenever draws conduct. so, distribution Legislatures 28 To review detail beginning 482, dealing ambivalent type enactment, rehash familiar. Two generalizations may, safely drawn series cases. oblique directly, instance, commerce States. Thus, views Holmes Hammer Dagenhart, 247 251, 277, 38 529, 62 1101, became Darby, 312 100, 61 451, 85 609, effort problem child labor Child Labor Case, 259 20, 42 449, 66 817, latter sustained. However, made substantively powers delegated shut eyes obviously, designedly, attempt control conduct left responsibility wrapped verbal cellophane 29 Concededly questions presented scrupulously abstain hobbling choice particularly vast reach concerned. allow excluded casting measure could, significantly expounded offer easy way imagination 'any great subjects interest, jurisdiction parted * *.' 38, 'significantly' Justices joined dissent McKenna Brandeis, JJ., Case. Issues gravity affecting balance susceptible comprehensive smooth formulas nonetheless although or, imposed ulterior ends. No phrase, however fine well-worn, enables decide concrete case. 30 relevant that, history went libretto song, context circumstances forth enactment—sensationally exploited disclosures regarding big cities small, corrupt politics, impatient response disclosures, feeling ineptitude paralysis local law-enforcing agencies—emphatically supports revealed floor namely, formally means raising essentially check stamp gambling. 31 nominal inadmissible intrusion domain enforced detailed administration obvious needs, supra. holding disrespectful Another basis deeming formal addition Government, enforcing provision enactment designed systematic confession crimes view prosecution 32 thing hold exception, testimony proceeding court, include potential danger possible Brown Walker, 161 591, 606, 644, 650, 40 819 conversely, enable court. Feldman 322 487, 64 1082, 88 1408. wholly different grapple compel self-incriminating laws, obviously passed purposes. scrutiny, expressed ways negative words face seek offend those standards decency civilization process barrier. 33 affirm judgment. 34 DOUGLAS, joining entire agrees herein 35 BLACK, DOUGLAS concurs, 36 declares nevertheless sustains man think provide him crime gambled paying §§ 3290, 3294, 3294. Whether am sure creates squeezing device contrived put prison refuses himself violator laws.* coercion confessions common justly criticized practice countries live up Bill Rights. Rights condemns coerced confessions, refined legalistic technique extortion. my 494—503, 1085—1089, 3285: '(a) Wagers. 'There defined subsection (b), equal per centum amount thereof. '(d) Persons liable 'Each subchapter him. Each conducts pool lottery. '(e) Exclusions 'No (1) wager with, conducted by, parimutuel enterprise (2) coin-operated section 3267.' 3290: 'A $50 year behalf liable.' 3291: collector district— '(1) name residence; '(2) A, on, residence behalf; '(3) person.' 3294: Failure 'Any subchapter, shall, besides payment fined $1,000 $5,000. '(c) Willful violations. 'The prescribed 2707 2700 apply subchapter.' Smith, D.C.S.D.Cal., 106 9; Nadler, D.C.N.D.Cal., 918; Forrester, D.C.N.D.Ga., 136; Robinson, D.C.E.D.Mich., 107 38; Arnold, Jordan Wingate, 478, D.C.E.D.Va. Sept. 18, 1952; Penn, D.C.M.D.N.C.1953, 111 605; Combs Snyder, D.C.D.C., 101 531, affirmed, 342 939, 562. There suggestions debates sought prevent Cong.Rec. 6892: 'Mr. Hoffman Michigan. Then renew observation properly penalty Cooper. Certainly, indulge hope imposition eliminate kind activity.' 12236: 'If official want enforce catches winking keep identifies newspaper gets church organizations get say, Sheriff, about it? down sell liquor.' He says, 'Is so? business." indicia offers support collected $4,371,869 compared expected $400,000,000 year. figure $4,371,869, relatively $3,501 adulterated renovated butter filled cheese, $914,910 including marihuana taxes, $28,911 transfer (Summary Collections, released Bureau Revenue, October 3, 1952.) argument Case (Bailey Drexel Furniture Co.), 30, 817. Wheat. 579, upheld clause. depends partly alternate circulation. re Rapier, 143 110, 111, 374, 93, mails papers advertised Louisiana Lottery barred. (Champion Ames) 188 321, 492, approved enough bar transportation pictures prize fights, Weber Freed, 239 325, 131, 60 308; seize contraband eggs after shipment ended, Hipolite Egg Co. 220 45, 56, 364, 366, 55 364; women immoral purposes, Caminetti 242 470, 37 192, 442. Butler, 297 68, 73, 312, 320, 477, disapproved, resulted met favor. Mulford 307 47, 59 648, 652, 83 1092; Wickard Filburn, 317 82, 87 122; Hill Wallace, 44, 67, 453, 457, 822, Trusler Crooks, 269 475, 46 70 365, taxation, regulated grain markets interference Board Trade City Chicago Olsen, 4, 839, regulations upheld. departure reversed 115—124, 457—462, said: 'Whatever purpose, infringe prohibition plenary Clause.' 115, 457. interstate extends affect appropriate attainment end, granted commerce.' 118, 459. Jin Fuey Moy, 241 394, 402, 658, 659, 1061; 493; Linder 268 5, 45 446, 69 819; 600. Cf. New York 326 572, 582, 587—588, 310, 314, 316—317, 90 326. 422, 34, 817; 63, 456, 458, 822; 365. 2011 et seq., tobacco manufacturers, dealers peddlers 'name, style, residence, trade, business, on.' 2810, possessor distilling apparatus particular still set owner thereof, 3270, 3270. Davis 328 590, 1256, 1259, 1453; 35, 1393, 1787; E. Fougera & York, 224 N.Y. 269, 281, 120 N.E. 642, A.L.R. 1467. These defenses open demurrer facts indictment relied usurpation enactment. Curtis-Wright Corp., 299 304, 330, 216, 225, 255. Compare Beacon Brass Co., 344 43, 77. '(b) Definitions. 'For chapter— 'wager' (A) sports event contest (B) contest, profit, (C) profit. 'lottery' includes numbers game, policy, types wagering. game usually (i) placed, (ii) winners determined, (iii) prizes property made, presence placing drawing organization exempt 101, net proceeds inures benefit private shareholder individual.' Steward Machine Davis, 301 584, 883, 889, 1279. accused gambled, punishable 'separate solitary' imprisonment. Purdon's Pa.Stat.Ann., 1945, Tit. 4601, 4602, 4603.

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