United States v. Butler - AbsoluteAstronomy.com

United States v. Butler, , was a case in which the Supreme Court of the United States

Supreme Court of the United States

The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...

ruled that the processing taxes instituted under the 1933 Agricultural Adjustment Act

Agricultural Adjustment Act

The Agricultural Adjustment Act was a United States federal law of the New Deal era which restricted agricultural production by paying farmers subsidies not to plant part of their land and to kill off excess livestock...

were unconstitutional. Justice Owen Roberts argued that the tax was "but a means to an unconstitutional end" that violated the Tenth Amendment

Tenth Amendment to the United States Constitution

The Tenth Amendment to the United States Constitution, which is part of the Bill of Rights, was ratified on December 15, 1791...

A tax for an impermissible regulatory purpose

The main point of the case was whether certain provisions of the Agricultural Adjustment Act of 1933 conflicted with the Constitution. In the Act, a tax was imposed on processors of farm products, the proceeds to be paid to farmers who would reduce their area and crops. The intent of the act was to increase the prices of certain farm products by decreasing the quantities produced.

The Court held that the so-called tax was not a true tax, because the payments to farmers were coupled with unlawful and oppressive coercive contracts and the proceeds were earmarked for the benefit of farmers complying with the prescribed conditions. Making the payment of a government subsidy to a farmer conditional on the reduction of his planned crops went beyond the powers of the national government. Specifically, Justice Roberts said:

The act invades the reserved rights of the states. It is a statutory plan to regulate and control agricultural production, a matter beyond the powers delegated to the federal government. The tax, the appropriation of the funds raised, and the direction for their disbursement, are but parts of the plan. They are but means to an unconstitutional end.

Taxation for the general welfare

Although it struck down the Act, the Court dealt positively with taxation and the expenditure of funds to advance the general welfare as specified in Article 1 § 8 of the Constitution. The Court stated that the issue “presents the great and the controlling question in the case.” After comparing expansive vs. restrictive interpretations of the Spending Clause, the Court adopted the philosophy that:

The clause confers a power separate and distinct from those later enumerated [,] is not restricted in meaning by the grant of them, and Congress consequently has a substantive power to tax and to appropriate, limited only by the requirement that it shall be exercised to provide for the general welfare of the United States. … It results that the power of Congress to authorize expenditure of public moneys for public purposes is not limited by the direct grants of legislative power found in the Constitution.

The fact that the Court struck down the Act despite an expansive interpretation of the Spending Clause reflects the turmoil in the Court’s thinking at this critical time. Indicating that turmoil and the fact that Butler was a turning point in the Court’s thinking, in later jurisprudence Butler has been referenced to support expansion of authority under the Spending Clause (e.g., Steward Machine Company v. Davis) and to dissent from such expansion (e.g. South Dakota v. Dole, , O’Connor dissent.) In her dissent, Justice O’Connor noted that Butler was the last case in which the Supreme Court struck down an Act of Congress as beyond the authority granted by the Spending Clause.

This was part of a series of cases decided by the conservative Supreme Court of the time period which declared unconstitutional

Constitutionality

Constitutionality is the condition of acting in accordance with an applicable constitution. Acts that are not in accordance with the rules laid down in the constitution are deemed to be ultra vires.-See also:*ultra vires*Company law*Constitutional law...

parts of Franklin D. Roosevelt

Franklin D. Roosevelt

Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...

's New Deal

New Deal

The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...

legislation.