James Clark McReynolds

“ No state may tax appropriate means which the United States may employ for exercising their delegated powers; the United States may not tax instrumentalities which a state may employ in the discharge of her essential governmental duties-that is those duties which the framers intended each member of the Union would assume in order adequately to function under the form of government guaranteed by the Constitution. ”

“ Has the federal government power to tax compensation paid to attorneys and others out of corporate assets for necessary services rendered about the liquidation of an insolvent corporation by a state officer proceeding as required by her statutes? ”

“ What limitations does the Federal Constitution impose upon the United States in respect of taxing instrumentalities and agencies employed by a state and, conversely, how far does it inhibit the states from taxing instrumentalities and agencies utilized by the United States, are questions often considered here. ”