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Anderson v. Forty-Two Broadway Co., 239 U.S. 69 (1915)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Anderson v. Forty-Two Broadway Co., 239 U.S. 69 (1915)
Anderson v. The Forty-Two Broadway Company No. 246 Argued October 18, 1915 Decided November 8, 1915 239 U.S. 69
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SECOND CIRCUIT
Syllabus
The Corporation Tax of 1909, 36 Stat. 112, was not an income tax, but an excise upon the conduct of business in a corporate capacity, the tax being measured by reference to the income in a manner prescribed by the act itself.
Where a corporation carries a current indebtedness exceeding the .amount of its paid-up capital stock, the interest deductions allowed in determining the net income subject to the corporation tax is limited to so much of the indebtedness as does not exceed the capital.
Congress has power to adopt a basis of distinction between corporations carrying indebtedness that exceeds the amount of the capital and those that do not, and the provision in the Corporation Tax Act limiting the amount of interest deductions to so much of the indebtedness as does not exceed the capital stock is not an arbitrary classification.
The operations of corporations having indebtedness exceeding their capital stock may be considered as conducted more for the benefit of the creditors than of the stockholders, and the contributions of the corporation to the expenses of the government be admeasured with this fact in view, and so held as to a corporation having $600 capital stock and $4,750,000 bonded indebtedness.
The facts, which involve the construction of the Corporation Tax Act of 1909 and the liability of a realty corporation to pay the tax imposed thereby, are stated in the opinion.
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Chicago: U.S. Supreme Court, "Syllabus," Anderson v. Forty-Two Broadway Co., 239 U.S. 69 (1915) in 239 U.S. 69 239 U.S. 70. Original Sources, accessed November 24, 2024, http://originalsources.com/Document.aspx?DocID=BJMKHFETX9EKVZ7.
MLA: U.S. Supreme Court. "Syllabus." Anderson v. Forty-Two Broadway Co., 239 U.S. 69 (1915), in 239 U.S. 69, page 239 U.S. 70. Original Sources. 24 Nov. 2024. http://originalsources.com/Document.aspx?DocID=BJMKHFETX9EKVZ7.
Harvard: U.S. Supreme Court, 'Syllabus' in Anderson v. Forty-Two Broadway Co., 239 U.S. 69 (1915). cited in 1915, 239 U.S. 69, pp.239 U.S. 70. Original Sources, retrieved 24 November 2024, from http://originalsources.com/Document.aspx?DocID=BJMKHFETX9EKVZ7.
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