James F. Byrnes

“ The amount of each of the several claims of the State and of the United States should be divided by the total of such claims. The percentage of the assets due on each claim is thus determined. The total of the assets available is then multiplied in turn by these percentages, and the actual sum to be allowed on each claim is found. However, the amount allowed on the federal government's claim under § 901 is then multiplied by 10%. The sum equal to this 10% is thereupon conclusively granted to the United States. ”

“ These considerations are equally pertinent to the suggestion that the 90% rebate arrangement constitutes the imposition of a 'penalty' within the meaning of § 57, sub. j upon an employer who fails or refuses to contribute to a state fund. The amount of the tax assessable under § 901 is definite and fixed, once the single variable, the total of the wages paid during the year, is determined. ”

“ One is that § 802 (a) of Title VIII provides that the tax 'shall be collected by the employer of the taxpayer' and thus reveals a Congressional intent that only a claim against the employee should be treated as one for a tax. The other asserted distinction is that Title VIII in its entirety is designed to impose two distinct taxes; § 801 imposes an 'income tax' upon the employee, while § 804 imposes an 'excise tax' upon the employer. [7] But a tax for purposes of § 64, sub. ”

“ The state's appeal from the District Court's first order of distribution was discontinued by agreement of the parties because the Social Security Act had been extensively amended while the appeal was pending. ”