Paul L. Caron

Thursday, October 5, 2006

Government Petitions for Rehearing En Banc in Murphy

The Government today petitioned for rehearing en banc in Murphy v. United States, No. 03cv02414 (D.C. Cir. 8/22/06), which held that § 104(a)(2) is unconstitutional under the 16th Amendment as applied to a recovery for a non-physical personal injury unrelated to lost wages or earnings.  The Government minces no words:

The panel's decision represents the first time in over 85 years that an exercise of Congressional income-taxing power has been declared unconstitutional, and the panel's narrow interpretation of the term "income" conflicts with over 60 years of Supreme Court precedents regarding the definition of income. The question presented in this case is thus one of exceptional importance to the administration of the nation's tax laws. Moreover, the panel's focus on the Sixteenth Amendment caused it to ignore that the relevant tax is justified by Congress's basic Article I taxing power.

For prior TaxProf Blog commentary on Murphy, see:

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» Petition for Rehearing in Murphy: from The Volokh Conspiracy
I don't know much about tax law and know next to nothing about the Sixteenth Amendment, but I just read the government's petition for rehearing in the [Read More]

Tracked on Oct 5, 2006 7:06:34 PM

The government yesterday asked the Court of Appeals for the Federal Circuit to have the full panel of judges re-hear... [Read More]

Tracked on Oct 6, 2006 6:06:02 AM